The Fair Labor Standards Act is a federal law that establishes the minimum wage, overtime pay, recordkeeping and child labor standards applicable to employees of businesses engaged in commerce or industry within the United States.
Wage and Hour Settlements is a law that protects workers from unfair labor practices. It covers the wages, hours, and working conditions of employees. The wage and hour settlements 2021 are the latest updates on the law.
Workers are guaranteed a minimum wage and overtime compensation under the Fair Labor Standards Act (FLSA) and state legislation. These employment regulations do not cover all employees; some are labeled “exempt.” Those who are protected, on the other hand, may file a lawsuit against an employer who violates wage and hour legislation.
If a worker is deemed a “employee” of a firm, wage and hour protections are different. Some firms misclassify workers as independent contractors on purpose in order to avoid paying them minimum wage, overtime, and other benefits. Wage and hour concerns, as well as worker misclassification, often go hand in hand. Even if an employee is correctly categorized, wage and hour concerns might arise. An employer might, for example, refuse an employee minimum wage and overtime pay, or force them to work during breaks and off the clock.
The wage and hour collective and class action lawsuit settlements listed below are meant to give you an idea of how these lawsuits could wind out for the plaintiffs. If you suspect your workers’ rights are being abused, ClassAction.com invites you to read through them and contact us.
Banking/Finance
$73 million – Bank of America
In December 2013, Bank of America agreed to a $73 million settlement to resolve charges that it coerced 185,000 nonexempt workers in retail banking locations around the country to work off the clock. Plaintiffs alleged that BoA violated federal and state wage and hour statutes by enforcing an off-the-clock policy throughout the corporation. Workers’ portion of the settlement was determined by the number of hours they worked and their hourly wage.
Merrill Lynch has a $12 million investment.
In February 2013, a collective and class action alleging that Merrill Lynch violated the FLSA and state overtime regulations in relation to client associates was resolved for $12 million. Client associates alleged Merrill Lynch failed to properly pay them overtime, underpaid overtime, and failed to keep correct payroll records. Financial advisors are paid a little salary, with the majority of their income coming from financial adviser commissions.
The Sharing Economy is a kind of economy in which
Uber has a valuation of $466,000 dollars.
In July 2016, a group of more than 400 Uber “ambassadors” in California reached a $466,000 settlement with the ride-hailing firm over accusations of non-payment of overtime, working off the clock, not being allowed breaks, and not being paid for job-related costs. The staff were paid to recruit new Uber drivers as “ambassadors” for the company. Class members who were eligible for compensation were paid out of a settlement fund depending on how many weeks they worked. Currently, Uber is the subject of hundreds of lawsuits around the country, including many employee class actions.
A misclassification lawsuit against the corporation was also resolved (for $100 million).
Services for Business
Ecolab has a market capitalization of $29 million.
In November 2013, Ecolab, a global provider of water, hygiene, and energy technologies and services, agreed to a $29 million settlement to settle a class action lawsuit alleging that it denied overtime pay to exterminators by falsely classifying them as exempt from overtime pay under the so-called “hazmat exemption,” a law that typically applies to drivers of hazardous material trucks. Ecolab agreed to categorize its exterminators as nonexempt as part of the agreement.
Security
$2.5 million Securitas
Securitas, a security agency, resolved a FLSA collective action lawsuit in February 2016 for $2.5 million, alleging that the company’s guards were subjected to an improper vacation pay policy. Guards said that instead of compensating them for vacation, Securitas gave them a flat sum payment as compensation for their time off. The court agreed with the guards that the payment must be included in FLSA overtime calculations, and that the vacation pay policy was basically a bonus scheme in disguise because of the way it was organized.
Retail
$19 million AT&T
In April 2013, AT&T agreed to pay $18.9 million to a group of California field managers who claimed they were wrongfully designated as exempt and so denied overtime pay and reimbursement for working through lunch and rest periods. AT&T maintained that the managers qualified for the FLSA’s executive and administrative exemptions, but the plaintiffs countered that the term “manager” was inappropriate since the majority of their labor was data input. Each field manager was entitled to roughly $11,000 as part of the contract.
$21 million – Rite Aid
Rite Aid wrongfully categorized a handful of assistant store managers and co-managers as free from overtime compensation, according to a FLSA collective action that settled for $20.9 million in June 2012. Class members around the country were entitled to approximately $2,000 each under the terms of the settlement, in which Rite Aid acknowledged no wrongdoing. The plaintiffs contended that they were merely managers in name and that the FLSA had wrongfully denied them overtime compensation.
Clubs for fitness
$17.5 million for 24 Hour Fitness
24 Hour Fitness resolved a FLSA collective action in February 2013 to address accusations that the fitness chain’s managers and trainers were denied overtime compensation and forced to work off the clock. A total of $11 million was distributed to 862 non-California litigants as part of the settlement. After a series of individual arbitrations, a settlement was achieved.
Restaurants
$950,000 Denny’s
In April 2016, Denny’s Inc. and a group of its California employees agreed to a $950,000 settlement to resolve charges that around 25,000 workers were not paid all of their entitled overtime and regular pay, and were not given meal or rest breaks. Denny’s was accused of breaking both the FLSA and California labor regulations, according to the plaintiffs. Only around 10% of eligible class members filed claims for compensation on time, as is typical of such settlements.
$6 Million – Pizza Hut
In July 2016, Pizza Hut achieved a $6 million wage and hour settlement with 18,700 employees. Workers who claimed they were shorted pay because they worked through rest and lunch breaks were entitled to roughly $86 each, while drivers who claimed they were not compensated for mileage and other expenditures were given an average compensation of $303 under the terms of the settlement.
Automobile Services
Sunny’s Limousine Service has a valuation of $3.5 million.
According to a collective and class lawsuit filed on behalf of hundreds of drivers, Sunny’s, a New York City-based car service, reportedly underpaid workers on minimum wage and overtime. Sunny’s allegedly violated the FLSA and New York Labor Laws by failing to properly track overtime and, in some cases, failing to pay overtime at all or at the proper rate, despite the fact that drivers were reclassified as employees rather than independent contractors, according to the lawsuit, which was settled in April 2014.
Sports and entertainment
$560,000 WME IMG
In July 2016, William Morris Endeavor Entertainment LLC and its subsidiary IMG settled a $560,000 class action lawsuit with New York City Fashion Week employees who alleged they were shortchanged on overtime pay. The employees said they were paid their standard rate for hours worked exceeding 40 in a workweek during two yearly, six-week Fashion Week events in February and September. For more over 40 hours worked in a week, the FLSA requires time and a half pay.
Dancers from the Far East
$8 Million Penthouse Executive Club
A lawsuit alleging that the Penthouse Executive Club in Manhattan misclassified exotic dancers as independent contractors in order to deny them job rights resulted in a $8 million settlement for a group of exotic dancers. The dancers claimed that the company violated the FLSA and New York Labor Law by failing to retain appropriate payroll records, failing to pay minimum wage, failing to reimburse job-related expenditures, and taking an unfair part of the dancers’ tips.
The case is one of many granting exotic dancers job status and benefits.
Supermarkets
Publix has a market capitalization of $30 million.
As part of a $30 million settlement struck in February 2015, Publix Supermarkets, which runs roughly 1,000 shops in six states, agreed to pay shortchanged department supervisors. Employee bonuses were not utilized to establish the basic pay rate, according to the complaint, therefore Publix managers were not appropriately compensated for overtime labor as required by the FLSA.
Janitorial and cleaning services
Coverall
In May 2015, franchisees filed a $5.5 million lawsuit against Coverall North America, Inc., a franchised brand of commercial and office cleaning services. Coverall was accused of engaging in fraudulent trade practices by misclassifying franchisees as independent contractors, according to the complaint. Class members got back compensation and were permitted to keep their Coverall accounts without paying a charge to the firm as part of the settlement.
The lawsuit is one of dozens throughout the country that has called into question the cleaning business franchise concept.
Tip Workers/Servers
$700,000 Texas Roadhouse
Waitresses at the Texas Roadhouse steakhouse franchise in Columbia and Anderson, South Carolina, claimed they were denied minimum wage because the company collected gratuities via a “invalid tip pool.” Under the FLSA, gratuities collected as part of a tip pool cannot be distributed to employees who do not earn tips as part of their regular salary. The servers claimed that because of the unlawful tip distribution, they were paid less than the minimum wage, which is also illegal under the FLSA.
Mario Batali has a net worth of $5.25 million.
Waiters, busboys, runners, and other employees of famous chef and restaurant owner Mario Batali have accused him and a business partner of appropriating a percentage of tips that should have gone to the workers. At the conclusion of each night, the Batali restaurant group reportedly took a 4-5 percent reduction from the tip pool that “went to the house.” Around 1,100 workers from Batali’s Manhattan restaurants were eligible to participate in the settlement.
Have Your Rights Been Infringed Upon? We can assist you.
Have you been denied the minimum wage or overtime pay? Are you forced to work during your breaks or while you’re not on the clock? Tips obtained from a shady pool?
You may be able to file a case if any of your rights under the FLSA or related state laws were violated. Learn more by scheduling a no-cost, no-obligation case evaluation.
The “wage and hour lawsuit statistics” is a blog post about wage and hour settlements. It includes information on how many cases were filed, the number of employees who participated in the suit, and the amount of money that was paid out.
Frequently Asked Questions
How long does a wage lawsuit take?
A: Wage lawsuits are very different and vary depending on the circumstances of each case.
What is a wage and hour case?
A: A wage and hour case is a legal case where the employer tries to enforce payment for hours worked.
What is a settlement of unpaid wages?
A: A settlement is a deal reached between parties who have been unable to reach an agreement. If one party wants the matter settled, they will offer a payment or concession of some kind in order to gain what they want from the other side.
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