Tag Archives: employees

Just because someone is A Manager does not mean they do not need to be paid Overtime under the FLSA

On February 28, 2019, a jury verdict of 2.9 million dollars was entered against Stake ‘N Shake, for not paying overtime to their managers.

That amount is likely to be doubled by the Court within the two months, or so, because under the FLSA the amount the jury awards is often doubled as a legally mandated penalty against the employer. The issue is that the employees suing Stake ‘N Shake were managers, and they were still entitled to overtime. In a famous case Family Dollar was hit with a judgement against them of over ten million dollars when their managers sued them, and they appealed and the appellate court determined their managers were entitled to overtime.

However, one of the most common things that people claim to have knowledge of about the Fair Labor Standards Act (FLSA), and its overtime requirements, is that managers are not entitled to overtime pay. It is patently false that giving someone the title of manager means you do not have to pay them overtime. To not pay overtime, to someone you call a manager, they must fit a very specific set of legal guidelines that are interpreted through hundreds, if not thousands, of Court decisions. Failing to pay someone overtime, who meets the complex regulations interpreted through court decisions, means you can be sued for overtime in a very expensive Federal or State Fair Labor Standards Act (FLSA) Lawsuit. Often time payroll companies, and non FLSA Lawyers, get wrong which managers get overtime, and which do not. For help in knowing if your managers should be paid overtime, or if one of your managers is suing you for overtime, call Joshua Sheskin at the Ft. Lauderdale Florida Headquarters of Lubell Rosen LLC.- By: Joshua H. Sheskin, Esq., 954-880-9500 jhs@lubellrosen.com

Workers with Varying Hourly Rates Have Variable Overtime Rates an Employer Must Pay Or Risk Getting Sued Under the Fair Labor Standards Act (FLSA)

Overtime seems like an easy concept; the employee is entitled to 150% of their regular hourly pay for every hour of overtime they work. However, under the Fair Labor Standards Act (FLSA) there are special rules for employees who make different rates throughout the course of the week, and when those different jobs count as independent employment, versus when the work at both jobs must be counted towards the employee’s forty hours per-week. A typical situation where this arises is in a restaurant where an employee sometimes acts as a manager and sometimes as a server, in this case the hours worked as a manager and as a server may or may not need to be added together to determine if overtime is owed, it depends on how you have set up that employment arrangement on paper with the employee. On that note, if management and service is set up improperly, then if the employee makes more as a manager, than they do as a server, you cannot pay them overtime rates based on whether the overtime hours were as a manager or server, nor take the lower of the two numbers.  When an employee has a varying hourly rate, getting the overtime calculation wrong can lead to a very expensive Federal Fair Labor Standards Act (FLSA) suit. If you do not have a contract in place with a worker who does what you think are two separate jobs, a contract that is legally adequate to distinguish the jobs under the Fair Labor Standards Act (FLSA), then you can also face an expensive FLSA lawsuit. For help in avoiding expensive federal lawsuits when paying employees varying hourly rates call Attorney Joshua Sheskin at Lubell Rosen

YOU CANNOT AGREE WITH YOUR EMPLOYEES THAT YOU DO NOT HAVE TO PAY THEM OVERTIME, EVEN IF THE AGREEMENT YOU MAKE PAYS THEM MORE

The right to overtime under the Fair Labor Standards Act (FLSA) cannot be given up in an employment contract, or agreed between the employer and employee not to apply. In hundreds of FLSA cases I have been involved in, one of the most common things employers are sued for is coming up with ways to pay their employees more, but that do not pay them overtime at one-and-one half times their regular hourly rate. Often times these employers tell me that the employee gladly signed a contract to be paid that way because it meant more money. A contract to pay less than one-and-one-half times the regular hourly rate for overtime hours is an illegal contract and completely unenforceable. An employee cannot give up his/her right to overtime, and an employer cannot agree to not follow the law. However, if you do want to pay your employees in a way that is not a strict hourly rate, and one-and-one-half times that rate for overtime, there are ways to do that for some employees. Other employees the Fair Labor Standards Act (FLSA) does not require you to pay overtime to. While exceptions to overtime laws can be applied to some employees, and other employees can be paid a salary that reduces the overtime rate (salaried employees are entitled to overtime), complex legal rules apply. Implementing a system of payment that does not subject you to lawsuits usually requires a labor lawyer. The Fair Labor Standards Act is a specialized field. To have a specialist help you avoid costly lawsuits call or email Joshua Sheskin at Lubell Rosen today – By: Joshua H. Sheskin, Esq., 954-880-9500 – JHS@LubellRosen.com

Strict Time Keeping Rules Are the Only Way to Protect Against Fair Labor Standards Act (FLSA) Lawsuits

 

Often times employers have time records that show they paid an employee correctly, however, even with those records many employers lose Fair Labor Standards Act (FLSA) lawsuits. This is because while these businesses have a time clock, and pay their employees based on the hours that the time clock produces, they fail to have policies that eliminate the possibility of employees alleging that they worked off of the clock. Implementing proper procedures as to when your employee’s clock in and out, and what they must do after clocking out, is essential to avoiding liability in an FLSA suit, because if all you have is a time clock and it shows you paid, the employee will simply claim that they worked off of the clock. It is not as easy as telling employees that they may not work off of the clock, because the definition of work under the FLSA is so broad, and you did not have guidelines in place preventing them from working off of the clock. You do not need to give an employee permission to work off of the clock to owe them pay for off the clock work, they just need to work off of the clock, even if you have a rule against it. A well-written policy and procedure sheet detailing your time keeping rules can save you from tens of thousands of dollars, or more, in liability, and just as much in attorneys’ fees. Having your policies in place, and signatures on policy statements, before an employee attempts to bring a lawsuit, can save your business from paying significant amounts in legal fees, and liability, even if you have a time clock already. Your policies must go beyond prohibiting work off of the clock, and act to prevent any attempt to work off the clock. For help in drafting policies and procedure guides that prevent work from taking place off of the clock contact Joshua Sheskin at the Ft. Lauderdale Headquarters of Lubell Rosen. – By: Joshua H. Sheskin, Esq., 954-880-9500JHS@LubellRosen.com.