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. 

Labor Board: Northwestern University Football Players Can Unionize

As of Wednesday, and according to the National Labor Relations Board in Chicago, football players are employees. For the players at Northwestern University this is good news because they can now unionize. The players petitioned in order to increase their bargaining power in the college sports arena. The ruling could change the landscape of the NCAA. In response to the petition, Northwestern University claimed that their players are not employers, they are students.

The board’s decision that the players should be classified as employees was based on several factors:

·       Athletes at the university get “paid” in scholarships
·       They work between 20 and 50 hours/week
·       They generate millions of dollars of revenue for the university

Players claimed the reason behind their petition was to receive better medical coverage (including concussion testing), four-year scholarships and the potential for outright payment for athletic services.

Northwestern plans to appeal. Richard Epstein, labor law professor at New York University, said the ruling has “vast implications for the structure of the sport, if upheld.” Individuals opposing the board’s decision claim that while the reform issues players are looking to address may be appropriate, unionizing may not be the best method of achieving change in this instance because of the negative effect it could have on the success of Northwestern athletics. An appeal would likely take years to resolve.

The NCAA responded to the issue by saying that, while it wasn’t directly involved in the proceedings, it didn’t agree with the decision of the board and disagreed with the idea that student athletes should be classified as employees.

For up to date information on the issue or to discuss other current affairs related to employment status, wage issues, etc. contact the experts at Blumenthal, Nordrehaug & Bhowmik today. 

Multiple Class Action Suits Filed Against McDonald’s by Fast Food Workers

Earlier this month, multiple class actions were filed in California, Michigan and New York against McDonald’s alleging that the fast-food giant is systematically stealing employee wages. Fast food workers filed the class action lawsuits against McDonald’s and some its franchisees claiming widespread wage theft that was accomplished by forcing employees to work off the clock, shave hours off time cards, and refusing to pay overtime.

McDonald’s executives are currently reviewing the allegations made in the lawsuits. The company claims that they (and their franchisees) are committed to fully investigating the claims and providing appropriate actions in response to any problems discovered.

These class action lawsuits are one more in a string of actions taken by fast-food workers protesting their pay. Many are paid minimum wage.

As recently as December, workers protesting minimum wage staged an extensive protest throughout the US. They were demanding that the federal minimum hourly wage be raised from the current $7.25 to $15.00. McDonald’s responded to protests by pointing out that their jobs provide workers with opportunities for advancement, competitive pay and benefits. A McDonald’s spokesperson also indicated that the company invests in training and professional development in order to aid workers in learning skills that are practical and transferable in business.

Experts agree that this string of actions being taken by fast-food employees upset with their wages, lack of overtime pay, etc. will continue.

If you feel your employer may be paying you unfair wages please get in touch with Blumenthall, Nordrehaug & Bhowmik to discuss potential resolutions to the issue. 

Federal Aviation Administration Authorization Act vs. California’s Meal and Rest Break Requirements

Initially, wage and hour putative class action brought by the same truck drivers was dismissed. Alleged claims were based on violations of California’s meal break laws. The class action was dismissed on the ground that the Federal Aviation Administration Act (FAAAA) preempted California meal break laws. It was the second time in recent months that a court upheld the argument that California’s break laws are preempted by the FAAAA. The FAAAA specifically preempts state laws when there is a significant impact on the “routes, service or prices” of motor carriers.

Truck drivers received a boost recently as their attempt to revive the class action suit against Vitran Express Inc. was supported by the Ninth Circuit court’s decision that the Federal Aviation Administration Act did not preempt California’s meal and rest break requirements. Many are watching the progress of the case.

Additional Background on the Case:

Plaintiffs were former truck drivers of Performance Food Group, Inc. (PFG), located in California. Plaintiffs claimed that PFG arranged delivery routes in order to ensure excellent customer service and timely delivery of cargo without taking into account “time pressure” on the truckers who were being given delivery windows and other policies that prevented them from taking meal breaks.

If you have questions about the California meal break laws, ask the experts at Blumenthal, Nordrehaug & Bhowmik. 

Employees and Their Smartphones: Is Your Smartphone Overworking You?

In modern American culture most people are hopelessly attached to their smartphones. If that’s not the case, the remaining few (with rare exceptions) can’t deny that they have an extremely close relationship with other technology (i.e. their computer, laptop, tablet, etc.) There are a multitude of benefits that come from living in this technological day and age, but because of smartphones and all the other beloved technology, work is bleeding into employees’ personal time.

The recession put a lot of pressure on employers to get the most of their employees. As a result, American business owners are squeezing their workers and cutting costs at the same time. One way in which many American employers are doing so is by accessing their workers after hours through all of the convenient technology that leaves employees available 24/7. Vacations are often unrecognizable as such due to the fact that contact is never severed with the employer. Many employees find it hard to differentiate between hours worked and hours off due to the easy and frequent access employers avail themselves of freely.

Experts agree that if employers had to bear the actual expense of paying for the overtime hours they are demanding, they would have actively sought a different solution such as hiring more workers during the economic recovery.

In response to the seemingly never ending after hours access provided by technology, employees are asking the courts to find a solution. It’s a changing time as courts attempt to reconcile laws that have been in place for decades with technological trends that have drastically altered the workplace landscape. Never before have employees been so irrevocably connected to their employers without break.

In 2011, there were 7,006 wage-and-hour suits filed (many of them class action suits) in federal court. This was nearly quadruple the total in the year 2000. In 2011, the Labor Department was able to recover $225 million in employee back wages. This was up 28% from the previous year. 300 wage-and-hour investigators were added in 2010 and 2011 alone which resulted in a 40% staff increase (to a total of 1,050). This was done in what was openly declared and effort to protect America’s workers.

Consider the facts and then consider your employer/employee relationship. If you feel that you are stuck in a 24/7 job with 40-hour/week pay, get in touch with the experts at Blumenthal, Nordrehaug & Bhowmik today. Don’t let your smartphone take the blame. 

Unpaid Overtime: What Type of Plaintiff Are You?

With the continued increase in unpaid overtime lawsuits in almost every industry, employees may find it useful to consider the various types of plaintiffs simply to get an idea of where their own workplace situation lies.

What Type of Plaintiff Are You?

1. Do you find yourself a slave to your handheld device? When you leave work, do you continue to answer questions, delve through documents and conduct brainstorming sessions? Do you often find yourself in arguments with your significant other because they simply want you to attend a family function, complete a household chore or actively involve yourself in a conversation from beginning to end without being interrupted by someone at work that needs you? If so, you could be a “worker with a handheld device” plaintiff. You go to work and you come home, but you never seem to be off the clock. You answer calls, check emails, and basically continue working into the night. Many would classify all this “after hour” work as unpaid overtime.

2. Does your job require a lot of in-office prep in order to go “on the clock?” Do you have to arrive early in order to complete a series of log ins, paper pushing, or mandatory meetings before you can actually “go to work?” If so, you might be an “off the clock work in the office” plaintiff. Many are asking the question (in court) whether or not they should be able to clock in when they get to work to prepare to work or if they are donating the time it takes to perform necessary functions prior to starting the job duties employers are willing to pay for.

3. Do you enjoy the use of a fancy title without the fancy job duties? Many employers have turned to the non-promotion promotion as a solution to overtime. “Promoting” employees without actually giving them managerial responsibilities is a game plan used by employers looking to keep labor costs down. Many managerial positions are exempt from overtime pay laws and requirements. If you found yourself impressed with an empty title at first, don’t feel bad, you aren’t the only one and you could be a “fancy title” plaintiff.

If you have more questions now that you understand the basics behind many of the employment law related suits you’ve been reading about in the news, get in touch with the attorneys at Blumenthal, Nordrehaug & Bhowmik today and get the right answers. 

Unpaid Commission: Can it Be Recovered?

Most feel they have a solid understanding of overtime pay and whether or not they are receiving what they deserve, but when it comes to commissions, there seems to be additional confusion. What is unpaid commission and when is an employee able to recover unpaid commission?

What is Unpaid Commission?

Before we can define unpaid commission, it’s important to define commission wages in general. Commission wages are common in many industries, but prevalent in the computer and technology industries particularly. According to California wage law, commission wages refers to compensation that is paid as a percentage of the price of the product or service that is being sold. Commissions can also be based on the number of items sold. Disputes regarding commission wages and unpaid commissions are often resolved under the same legal principles as bonuses.

When are commissions “unpaid?” The easy answer is that commissions are classified as unpaid when they have been earned and never received. Technically the commission is earned by the employee who “procures cause” for the sale or other event resulting in commission pay. Disputes often arise when management intervenes during the sales process. When management is involved at some point during a sale, it is important to note the point at which someone procures cause for the sale and who was handling the customer at that point in time. This is the individual who has technically earned the agreed upon commission.

Obtaining Unpaid Commission:

If you feel you are entitled to commission that you never received, seek legal counsel. Employers frequently change compensation plans, utilize unfair provisions and/or adopt a very narrow interpretation of a commission agreement or plan. In some cases, employers are forced to seek unpaid commission post-employment. It’s important to note that employees who no longer work for a company can still be due commission on sales procured during their employment. Employers can’t reap the benefit of your efforts while simultaneously ignoring the agreement to provide you with a commission for those same efforts.

Employers will often work their compensation plans in various ways in order to justify commission forfeiture with little to no cause. Examples include employers who add verbiage making commission payment “exclusive” to current employees or allowing the employer to alter the commission agreement in certain situations, etc. California wage laws can help former and current employees recover commissions. The courts may see the commission agreement differently than your employer.

Call Blumenthal, Nordrehaug & Bhowmik today and find out how your unique circumstances can be taken into consideration when attempting to obtain unpaid commissions.