Failure to Pay Overtime Has Navy Federal Credit Union Making News

In recent news, a lawsuit was filed claiming that Navy Federal Credit Union failed to pay appropriate overtime wages. Accusations were made against the Vienna based federal credit union by some of the branch workers. The original suit was filed by Anthony Lee out of Clark County, Nevada on May 27^th in the U.S. District Court, but he plans to seek class action status so others can join in the suit. Mr. Lee has been a member services representative at Navy Federal Credit Union for almost six years. This position is categorized as non-exempt from overtime (according to the suit filed).  Lee claims that he and other workers in jobs with similar duties have been frequently required to work off the clock both before their shift starts and after it ends. The total of the “off the clock” work was approximately 30-45 minutes per day per employee. The lawsuit alleges that this practice of requiring off the clock work before and after shift work is in violation of the Fair Labor Standards Act (FLSA).

In addition to allegations that the Navy Federal Credit Union violated FLSA, Lee claims that one of his previous managers in the workplace referred to him by the “N” word on multiple occasions. In response, a statement was issued by Navy Federal: “The fair treatment and well-being of our employees is of the utmost importance to us…we take this claim seriously and are looking into it.”

The Navy Federal Credit Union is the largest credit union in the United States employing approximately 11,000 employees worldwide. It’s possible that up to 500 of their workers might be a part of the class action started by Lee in regards to FLSA violations, etc. The suit will be seeking a declaratory judgment that the allegations made were illegal as well as an injunction preventing further similar activities. Damages are unspecified, but will include waiting time penalties as well as court costs.

Class action lawsuits serve an important function in the workplace. They provide employees with the opportunity to come together and assert their rights under California Labor Laws and federal employment laws such as the Fair Labor Standards Act (FLSA). Contact Blumenthal, Nordrehaug & Bhowmik with questions on class action suits in California. 

Work Off the Clock: Nurses Allege Wage and Hour Violations at Houston Methodist Hospital

Allegations have been made that the Houston Methodist Hospital requires nursing staff to work off the clock due to a payroll system that automatically deducts a 30 minute lunch break. A former nurse named Joy Corcione is seeking permission from a local federal court for collective action on behalf of over 5,000 workers from the facility. The lawsuit Corcione filed alleges that as a result of the automatic lunch break deductions the hospital owes back wages to the nurses, nursing assistants, patient care assistants, etc. Corcione explains that workers are required to respond to patient calls as well as meet with doctors and perform other duties as necessary during their so called “lunch breaks.” The lawsuit also alleges that sometimes nurses and other hospital employed caregivers don’t get to eat lunch at all, they are too busy.

The hospital has responded to the allegations made in the suit saying:

1. They make sure to pay workers appropriately even if their lunch is interrupted.

2. Hospital administration makes a great effort to ensure a fair compensation process as well as a fair work place environment.

3. The hospital will address claims otherwise during the process of litigation.

According to the Federal Labor Law, employers don’t have to pay employees during their lunch breaks if they are not working, but it’s been specified that if workers are still on duty (answering calls, going through emails, performing other work-related activities) during their lunch break then this time is considered work time even if they are eating, making personal calls or texts etc. while performing said duties.

It will be interesting to see what U.S. District Judge Gregg Costa has to say about the payroll system that automatically deducts the 30-minute break and the alleged discouragement of employees to manually correct the deduction of meal time and break time on their time sheets. The judge will need to decide whether or not to certify it as a collective action, but if he does, other nurses and patient care employees from the hospital can expect to receive notices regarding their chance to opt in – only employees who opt in can share in any eventual settlement.

If you have any questions about class action lawsuits or meal break violations, please get in touch with the experts at Blumenthal, Nordrehaug & Bhowmik. 

Workers are Filing Wage and Hour Lawsuits at a Record Pace

Experts are noting that federal wage and hour lawsuits were filed at record rates throughout 2013-2014. (According to data collected by the Washington-based Federal Judicial Center, the education and research agency for the federal court system).

While the full range of data is extensive, there are some interesting pieces of information included in the analysis that can provide a clear summary of recent filing activity related to wage and hour allegations:

8,126 federal wage and hour lawsuits were filed between the dates of 4/1/13 and 3/31/14.

This was almost a 5% increase in comparison to the year previous in which only 7,764 cases were filed

Since the year 2000, the number of cases has risen 438%

Many experts predict that the wage and hour litigation epidemic will continue and even expand in the upcoming year. The rise in the number of cases is shocking, but doesn’t even take into account the number of suits filed in state courts regarding state pay practices. The number of cases is expected to continue to accelerate in the coming months as a result of multiple factors: the tightening of federally mandated standards for class certification, the possibility of an increased minimum wage, the President’s directive to the Secretary of Labor to complete revisions for regulations on white-collar exemptions, etc.

Wage and hour issues are a common problem in many workplaces. If you feel pressured to work more hours than you are paid for or if you feel that your pay is inadequate in relation to the federal wage and hour standards, get in touch with the experienced attorneys at Blumenthal, Nordrehaug & Bhowmik. 

Accusations of Labor Violations at TGI Friday’s

One of the nation’s most popular casual dining spots has been named in a class action lawsuit. TGI Friday’s is accused in the suit of systematically underpaying its tipped employees. Allegations made within the suit filed on April 17, 2014 in New York Federal Court include: TGI Friday’s requires that tipped workers are at work early and say late after closing without minimum wage compensation and/or overtime pay. The suit was filed by four former employees of TGI Friday’s in the New York metro area and Fredericksburg, Virginia. Plaintiffs also indicate that the restaurant management utilized a central time-keeping system that allowed them to cut hours from employee time records – requiring employees to work off the clock doing prep work and clean up before and after their shifts/restaurant hours.

No one has indicated a specific dollar amount for this lawsuit, but speculation puts it in the millions. Allegations of violations of the Federal Fair Standards Act and the New York Law were made against TGI Friday’s and Carlson Restaurants (its parent company).

TGI Friday’s has approximately 540 domestic locations and 17,700 US employees. The suit represents all current and former workers: servers, bartenders, hosts, bussers and any other “tipped” workers at the chain.

Workers are seeking recovery of minimum wages as well as overtime pay, misappropriated tips, unlawful deductions, etc.

Many employers are attempting to maximize profit by minimizing employee costs. If you are being underpaid for hours worked, get in touch with an expert wage and hour attorney at Blumenthal, Nordrehaug & Bhowmik. 

Beau Biden Named in Unpaid Overtime Suit

Three detectives (R. Durnan, G. Christian, and M. Forbes) previously employed by the Delaware Attorney General’s Office have filed charges against their former employer claiming that they were not paid overtime. The federal lawsuit claims that the failure to pay overtime was in violation of federal labor laws and that in response to their demands for overtime pay they were demoted.

The detectives named Delaware Attorney General Beau Biden, Timothy Mullaney (his chief of staff) and the Delaware Department of Justice as defendants. The civil action was filed in U.S. District Court earlier this week.

Christian retired earlier this year and Durnan is set to retire in May 2014. The three were titled “detectives,” but their job duties were almost entirely made up of one task – handling the out-of-state extradition of fugitives who fled the state. The detectives allege that they all worked in excess of 40 hours/week between November 2010 and November 2013, but were never paid overtime due. According to the allegations made in the suit, Mullaney’s response to the detective’s request for overtime compensation was to reassign Durnan and Forbes to different assignments and to leave Christian in his position at a limited capacity with no overnight travel, no flying and a maximum of 37.5 hours allowed per week. The detectives claim the reassignments were retaliation. The plaintiffs seek overtime pay due, reassignment to their old positions, damages and legal fees.

Talk to the experts at Blumenthal, Nordrehaug & Bhowmik to find out if you have cause to worry about your own situation. Are you getting the overtime pay you are due? 

Arguing the Professional Exemption

The Obama administration recently took a closer look at the Professional Exemption. Their scrutiny was followed by instructions to the Department of Labor to narrow the definition of the exemption. Changes are set to take effect in 2015, but Courts may begin utilizing the new definitions and strictures immediately if recent activity is any indication. 

Court cases that involve the proper classification of employees are generally the most contentious. This makes sense as the stakes are higher than cases involving potential repayment of back wages and/or penalties for overtime. They can also require complete reclassification of employees listed in the case with overtime required from that point forward. In proper classification cases, a ruling against the employer often means a complete change in the way the company runs their business.

Many employers have been cutting corners to save money on overtime. Some say it’s due to the Labor Code coming across as complex. But it’s more likely a combination of complexity allowing for loose interpretations/purposeful misinterpretations embraced during low cash flow points in a troubled economy. Employers feel they need to save the money and many are deciding to do whatever they can (legal or not) to save money on overtime costs.

A recent case involving day rate employees being classified under the labor code as professionals exempt from overtime pay seems to support the idea that the courts will consider changes to the Professional Exemption now rather than waiting until 2015. Workers in the recent case were working 12-hour shifts, sometimes 7 days a week leaving them totaling in excess of 84 hours some weeks. Their work was compensated by a day rate. Some weeks their total pay (if they worked only a couple days) was less than $455/week. Legal representation for the plaintiffs in the case argued that claiming an employee is a salaried professional, but paying them less than $455/week some weeks does not meet the requirements of the Professional Exemption’s first prong.

The case was concluded on March 27, 2014. The Federal Middle District of Pennsylvania court clerk recorded judgment for wage and hour violations in the case (3:14-cv-00042-RDM). Allegations accused the employer of failing to pay workers overtime for their hours that exceeded the full time 40. The court supported the claims. We can most likely expect to see more decisions leaning towards the new understanding of the Professional Exemption.

If you feel that you may be due past overtime or know someone who is in an untenable work environment, get in touch with the experts at Blumenthal, Nordrehaug & Bhowmik today.

Obama Signs Memo to Strengthen Overtime Pay Rules

President Barack Obama signed a presidential memo this month directing the Dept. of Labor to come up with new overtime rules in order to make more workers eligible for time and a half pay. Obama has made it clear that he will bypass Congress when necessary to take action on economic initiatives. This is currently one of his most far-reaching executive actions this year even though new rules wouldn’t take effect most likely until 2015.

The new overtime pay rules would be focused towards workers on salary who earn more than $455/week and are ineligible for overtime due to management titles even though their actual job duties include few supervisory capacities. New regulations could change the definition of “supervisor” according to employment law. The salary/week limit separating workers who get paid overtime and those who don’t was last raised in 2004 by the Bush administration. Prior to 2004 it hadn’t changed since the 1970’s.  

Those in support of new overtime rules feel that millions of American workers could benefit from a change. Those who are against the change feel that increasing the number of workers eligible for time and a half pay for overtime would create a burden too heavy for small businesses and could potentially cost Americans jobs.  

Obama’s focus isn’t limited to overtime pay rules. This year, the President is also focused on federal minimum wage. He hopes to increase worker pay this year by calling on Congress to increase the minimum from $7.25 to $10.10.

For additional information on employment law, federal minimum wage and overtime regulations get in touch with the experts at Blumenthall, Nordrehaug & Bhowmik.