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FLSA

Staples gets nailed for breaking overtime law

04/27/2009

A federal jury in Newark has awarded $2.5 million in damages to 343 sales managers employed by office superstore Staples. The court determined the retailer misclassified the managers as exempt from the Fair Labor Standards Act when they were not.

Turnabout is fair pay: EEOC broke overtime law

04/22/2009

An arbitrator has ruled that the EEOC willfully violated the Fair Labor Standards Act by forcing employees to take comp time instead of overtime pay when they worked more than 40 hours a week. The EEOC will be liable for back pay, plus liquidated damages that so far haven’t been determined.

Owner can be personally liable for FLSA violations

04/17/2009

Here’s an important reminder for small companies and their owners: Don’t think that owners aren’t personally liable for wage-and-hour violations simply because they run their operations through a corporation or limited liability company. As the following case shows, employees can personally sue hands-on owners.

DOL to ‘refocus’ on enforcement; add 33% more investigators

04/17/2009

Employers, beware: U.S. Department of Labor Secretary Hilda Solis is promising to “refocus the agency on its enforcement responsibilities” in the coming months. The proof: DOL is adding 250 new field investigators—a staff increase of more than a third—to look into noncompliance on wage-and-hour issues.

The impact of partial-day absences on exempt status

04/17/2009

Q. We have a policy that allows exempt employees to take partial days off and have the balance of the day charged against their accrued vacation time in two-hour increments. I have concerns that this arrangement—despite the fact the exempt employees are getting their full salaries—could appear that they’re being treated as hourly employees, thus jeopardizing their FLSA exemption status.

Can we pay hourly staff comp time instead of OT?

04/17/2009

Q. I’ve heard conflicting answers: Is it legal for our company to pay our hourly employees comp time instead of paying time-and-a-half for overtime worked?

When making exempt/nonexempt call, actual duties trump résumé or job description

04/14/2009

Don’t rely on old job descriptions or résumés to prove you have properly classified an employee as exempt from overtime. Instead, make sure employees’ job descriptions actually reflect the day-to-day work they’re performing. Little else counts.

United Airlines to pay $850,000 settlement for disability bias

04/14/2009

Chicago-based United Airlines agreed to settle a disability discrimination suit stemming from practices at San Francisco International Airport. The case involved a United policy restricting overtime for workers who had been placed in light-duty assignments.

Family Dollar owes big bucks to misclassified managers

04/14/2009

Family Dollar Stores recently got a lesson in the nuances of overtime labor law. The 11th Circuit Court of Appeals has upheld the $35.6 million settlement of an FLSA class action suit brought by store managers at the discount chain.

Slumping auto market puts salespeople out of commission

04/14/2009

Commissioned salespeople are hurting in this economy, but their employers may be feeling the pinch, too. Take, for example, Rick Case Enterprise, a company that owns several Broward County auto dealerships.