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FLSA

Employee or independent contractor? Control is key issue

02/01/2008

Employees are entitled to minimum wage and overtime pay under the Fair Labor Standards Act. Independent contractors are not. That difference can save companies hundreds of thousands of dollars on their labor budgets—but only if they really are using independent contractors. But if those “independent contractors” are actually employees, they can sue for unpaid wages and overtime …

If you ignore legal notice, you lose

02/01/2008

Ignoring any legal papers that land on the receptionist’s desk may spell big trouble. If you don’t answer a lawsuit in time, whoever filed the lawsuit gets an automatic win …

Payroll blunder leads to big payday for Hurricane Katrina workers

02/01/2008

Two companies providing services in the Hurricane Katrina recovery have agreed to pay a total of nearly $1 million to settle claims that nearly 400 workers weren’t paid fairly for their overtime hours …

Shipping interstate or intrastate? It matters for overtime

02/01/2008

Due to a legislative quirk, the Fair Labor Standards Act doesn’t cover many employees who deliver goods via the nation’s highways. Instead, the drivers are excluded under the FLSA’s motor carrier safety exemption. But it’s not so simple …

Arbitration may not bar class action

02/01/2008

Two managers at Dynamics Research brought a wage-and-hour class-action suit under the Fair Labor Standards Act (FLSA) and Massachusetts law. The company asked the court to throw out the class action because it said it had a “Dispute Resolution Program” that required arbitration and disallowed class-action suits. The managers said the way the company instituted the dispute resolution process made it invalid …

CVS fined for child labor, overtime and timecard violations

02/01/2008

CVS Caremark Corp. was fined $226,000 by the U.S. Labor Department for changing employee timecards and violating child labor laws. The department found 43 violations at stores in Pennsylvania and six other states …

$17,000 brightens day for Worthington mushroom workers

02/01/2008

A group of fired Thai workers have settled an unpaid-wages lawsuit with Creekside Mushrooms of Worthington. The mushroom grower will pay $17,376 in back wages to four workers …

Colorado Child Labor Law

02/01/2008

Besides the federal Fair Labor Standards Act, Colorado employers must also comply with the state’s child labor law, administered by the Colorado Division of Labor …

Minnesota Minimum Wage Law

02/01/2008

Minnesota has a two-tiered minimum wage. Large employers (with annual receipts of $625,000 or more) must pay workers $6.15 per hour. Small employers (with receipts of less than $625,000) must pay $5.25 per hour. But many of those small employers must also comply with the federal Fair Labor Standards Act, which requires paying a minimum wage of $5.85 per hour …

Settle quickly if you’re worried overtime case will expand

01/01/2008

Overtime collective actions represent a growing nationwide trend. These are cases in which one employee claims his employer misclassified him as exempt and owes overtime. The employee also claims to represent everyone else similarly situated. If such a case goes forward, it may mean the employer must pay out thousands of dollars in unpaid overtime. Employers have only one chance to make the case go away …