Tag Archives: Minimum Wage Violations

Florida Subway Franchisee Ordered To Pay Over $11,000 In Back Wages And Damages To Restaurant Workers For Failure To Pay For Mandatory Training Courses

Solis v. Franchise Equity Group, Inc.

Case No. 8:12-cv-00527-RAL-EAJ

2012

A Subway eatery franchisee with 29 locations in the Tampa Bay area has been ordered to pay 122 employees a total of $7,536 in minimum back wages plus $3,768 in liquidated damages by Judge Richard Lazzara of the U.S. District Court for the Middle District of Florida, Tampa Division. The judgment resolves a lawsuit filed by the U.S. Department of Labor against Franchise Equity Group Inc., doing business as MacSub, which followed an investigation by the department’s Wage and Hour Division that found violations of the Fair Labor Standards Act’s minimum wage provisions.

Employees included in the judgment were not paid for work hours spent taking Subway “Sandwich Artist Certification” training courses, which resulted in the minimum wage violations.

If you are currently employed in a franchise restaurant and have attended your employer’s mandatory training sessions without being paid for your time you should consult a labor  attorney to evaluate your potential case.

This post is intended to provide you with information about overtime and wage cases filed throughout the country by other law firms and the government. It serves to give you an idea of the types of issues which are currently being litigated by employment lawyers as well as those which have been “settled.”

As a courtesy to you, we are providing the court name, case number and date filed to facilitate your search for it on the federal PACER website. Current information regarding case status, parties and attorneys is available on PACER to anyone who opens an account with them.

Please also note that some cases we report on were initiated by the Department of Labor and then settled  without having been filed in Federal Court and thus will not be available on the PACER website. For these cases we generally provide a brief summary of the findings and results.

Please feel free to complete the form below for submission to our law firm if you would like more information about your possible employment claim.  A representative will review it and  contact you. Please allow one  business day for someone to contact you and if you do not hear back from us then  it is possible that we did not receive it. This is a FREE consultation and you will not be charged for this call. Also please be advised that, merely by submitting this form, no Attorney-Client relationship is formed with the law firm.  The ONLY way that an Attorney-Client relationship with  the Law Office of Rose H. Robbins is formed is by specifically written  agreement signed by you and the Law Office of Rose H. Robbins.  You must provide your name,  home  or cell phone number and your zip code and all remaining fields are optional.

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Filed under Back wages, Cases Filed By Others, minimum wage violations, Restaurants

US Labor Department finds Knoxville, Tenn., misclassfication, security company owes $62,000 in back wages to 34 guards misclassified as independent contractors

Jan. 9, 2012

Custom Security Solutions Inc. has agreed to pay $62,038 in back wages to 34 security guards after an investigation by the U.S. Department of Labor’s Wage and Hour Division found the employees were improperly classified as independent contractors and consequently denied minimum wage and overtime wages due under the Fair Labor Standards Act.

Custom Security Solutions provides guard services for Premium Coal Co. at its mining sites and washing and loadout plants in Anderson, Scott and Campbell counties.

“Increasingly, employers are categorizing their employees as independent contractors to avoid paying them in compliance with the FLSA, as well as other federal, state and local statutes,” said Sandra Sanders, director of the Wage and Hour Division’s Nashville District Office. “Misclassification costs taxpayers millions of dollars each year in uncollected employment taxes, and gives unscrupulous employers an unfair advantage. The Wage and Hour Division is vigorously pursuing corrective action in those situations when workers are, in fact, employees, to ensure that they are paid required wages and level the playing field for employers who play by the rules.”

The division’s investigators determined that the 34 employees were paid a “straight time” rate for all hours worked instead of time and one-half their hourly rates for hours over 40, as required by the FLSA. This practice resulted in the employees being owed $61,937 in overtime back wages. Additionally, one of the employees was not paid the minimum wage of $7.25 per hour for all hours worked, and is also owed $101 in minimum wage payments.

In addition to paying the back wages, the company agreed to maintain future compliance by ensuring employees are properly classified and compensated for all hours worked in accordance with the FLSA.

The misclassification of employees as independent contractors is an alarming trend, particularly in industries that often employ low-wage, vulnerable workers and in which the Wage and Hour Division historically has found significant wage violations. The practice is a serious threat both to employees entitled to good and safe jobs, as well as to employers who obey the law. Misclassified employees often are deprived of overtime and minimum wages, and are forced to pay taxes that their employers are legally obligated to pay. Misclassification also creates a competitive disadvantage for employers who comply with the law.

Under the FLSA, an employment relationship must be distinguished from a strictly contractual one. An employee as distinguished from a person who is engaged in a business of his or her own  is one who, as a matter of economic reality, follows the usual path of an employee and is dependent on the business that he or she serves. For more information, visit http://www.dol.gov/whd/regs/compliance/whdfs13.htm.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their hourly rates of pay for hours worked beyond 40 per week. Additionally, accurate records of employees’ wages, hours and other conditions of employment must be maintained.

Our firm will prosecute class  and collective actions on behalf of aggrieved employees. We will undertake any litigation arising from this investigation on a contingent fee basis. If a lawsuit is filed as a result of this investigation, we will only seek payment of any fees from recovery generated by the lawsuit. This means any fee we receive will be paid by the defendant or out of any settlement or judgment recovered.  Likewise, all costs will be advanced by us. If an action is filed and not successful, you would not be responsible for any of our fees or costs. If you wish to discuss this investigation and any potential legal options you may have, or if you have any questions please contact our law office.

You may contact the Law Offices of Rose H. Robbins for a free consultation to see if you have a case for unpaid overtime or minimum wages by calling (954) 946-8130 or by filling out the confidential “contact us” form below which will arrive at our law offices instantly. You may email us too: rose (at) roserobbins.com   If our office decides to accept your case and we enter into a written, signed retainer agreement you will not have to pay anything unless we win your case. Appointments are available at various locations in Palm Beach, Broward and Miami-Dade Counties.

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Filed under Misclassification, Security guard

Aspen Nursing Services ordered to pay back wages for overtime to home health care workers

A federal court has ordered Aspen Nursing Services Inc. to pay $210,000 in back wages and damages to 22 employees who worked for the company’s home health care division, Aspen Community Living, in Louisville.

The judgment results from a lawsuit filed by the U.S. Department of Labor alleging violations of the Fair Labor Standards Act.The suit arose from an investigation that found that the company failed to pay employees an hourly rate equaling the minimum wage, and employees who worked more than 40 hours in a week had not been paid the required one and one- half times their regular rates of pay for overtime hours.

The labor department said employees were paid flat rates per day. The company also failed to keep accurate records of employees’ hours.

Our firm will prosecute class  and collective actions on behalf of aggrieved employees. We will undertake any litigation arising from this investigation on a contingent fee basis. If a lawsuit is filed as a result of this investigation, we will only seek payment of any fees from recovery generated by the lawsuit. This means any fee we receive will be paid by the defendant or out of any settlement or judgment recovered.  Likewise, all costs will be advanced by us. If an action is filed and not successful, you would not be responsible for any of our fees or costs. If you wish to discuss this investigation and any potential legal options you may have, or if you have any questions please contact our law office.

You may contact the Law Offices of Rose H. Robbins for a free consultation to see if you have a case for unpaid overtime or minimum wages by calling (954) 946-8130 or by filling out the confidential “contact us” form below which will arrive at our law offices instantly. You may email us too: rose (at) roserobbins.com   If our office decides to accept your case and we enter into a written, signed retainer agreement you will not have to pay anything unless we win your case. Appointments are available at various locations in Palm Beach, Broward and Miami-Dade Counties.

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Filed under FLSA payroll records, Home health care workers, minimum wage violations

Florida’s Minimum Wage Increasing 36 cents to $7.67 per hour! Big news for tipped employees!

Due to an increase in Florida’s minimum wage, the state’s lowest-paid workers will be receiving about a $14-a-week raise starting January 1, 2012. State law mandates an automatic increase in the minimum wage that Florida employers can pay their hourly workers. Based on cost-of-living increases, Florida will increase the current rate of $7.31 an hour to $7.67 an hour on Jan. 1, 2012.

This is big news for tipped employees! With few exceptions, starting January 1st, tipped employees must be paid at least $4.65 per hour ($7.67 minus the $3.02 tip credit = $4.65).

If you are a tipped employee, and have questions about the minimum wage, please contact us. The biggest violations of the tip credit laws occur when restaurants make their tipped employees “tip out” managers or workers in the “back of the house” (cooks, dishwashers, expeditors, salad preparers). If this has happened to you anytime in the past five years, call us at for a free consultation.

You may contact the Law Offices of Rose H. Robbins for a free consultation to see if you have a case for unpaid overtime or minimum wages by calling (954) 946-8130 or by filling out the confidential form below which will arrive at our law offices instantly. If our office decides to accept your case and we enter into a written, signed retainer agreement you will not have to pay anything unless we win your case. Appointments are available at various locations in Palm Beach, Broward and Miami-Dade Counties.

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Filed under Fair Labor Standards Act ["FLSA"], minimum wage violations, Restaurants, Tipped back wages

SCHOOL JOBS & FAIR LABOR STANDARDS ACT (FLSA) LIST OF EXEMPT AND NON-EXEMPT POSITIONS

The Fair Labor Standards Act (FLSA) designates some employees who are exempt from the overtime and minimum wage requirements of the FLSA.

A.            There are four (4) main types of FLSA exemptions: executive, administrative, professional employees and “highly compensated” employees (29 Code of Federal Regulations (C.F.R.) part 541)

B.            Exempt employees generally must be paid on a “salaried” or fee basis, earn at least $455 per week, and meet one of the “duties” tests below.

The salary and salary basis requirements of the FLSA, however, do not apply to bona fide teachers.

For computer employees to qualify as exempt employees, they must be compensated either on a salary or fee basis at a rate not less than $455 per week, if compensated on a weekly basis, or at a rate not less than $27.63 per hour, if compensated on an hourly basis.

C.            Employees who are exempt under the executive, administrative or professional exceptions must “primarily” perform executive, administrative or professional duties (i.e., generally at least fifty percent (50%) of the employee’s time). (29 C.F.R. Part 541) “Highly compensated” employees must perform at least one (1) of these duties and meet the salary requirements as indicated below.

1.            Executive employee: Must be paid on a salary or fee basis and primary duty must include: (a) managing the enterprise in which s/he is employed or managing a recognized subdivision or department of the enterprise; AND (b) customary regular direction of two (2) or more other employees AND (c) authority to hire and fire other employees or have hiring and firing recommendations carry significant weight. Superintendents, assistant superintendents, Treasurers/chief school business officials and most directors generally are covered by this exemption.

2.            Administrative employee: In addition to salary requirements, primary duty must include: (a) either performing office or non-manual work directly related to management policies or general operations of the employer OR performing functions in the administration of a school system (or department or subdivision) in work directly related to the academic instruction or training AND (b) work requiring the exercise of discretion and independent judgment with respect to matters of significance. Principals, assistant principals, coordinators, and supervisors generally are covered by this exemption.

3.            Professional employee: In addition to salary requirements, primary duty must include (1) either work requiring knowledge of an advanced type customarily acquired by a long course of specialized study (work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion) OR work requiring invention, imagination or talent in a recognized field or artistic endeavor OR teaching in a school system/educational institution OR work requiring highly specialized computer knowledge (primary duty consist of apply in designing systems, hardware or software.) “Learned professions” such as teaching, psychology, nursing (at the level of R.N. and above), counseling and accounting generally are covered by this exemption.

4.            “Highly Compensated” employee: Employee’s salary is more than $100,000 annually AND employee regularly performs one (1) or more of the exempt duties of an executive, administrative or professional employee AND primary duty is non-manual office work.

D.            If an employee primarily performs non-exempt work, overtime and minimum wage requirements may apply. For example, if the director of maintenance spends most of his/her time doing hands-on maintenance, then s/he is most likely a “non-exempt” employee.

E.            Exempt employees are not covered by FLSA minimum wage and overtime provisions; however, they are covered by equal pay and record-keeping provisions.

F.            FLSA provisions do not apply to the following “non-covered” persons: independent contractors, bona fide volunteers and trainees, such as student teachers.

The following list represents some of the common categories of school district employees under the exemptions as well as a list of common categories of non-exempt employees. Certain positions, such as superintendent, may qualify under more that one (1) category, but are listed under the following categories below to be consistent with school districts in other states.

Executive Exemption:

Superintendent

Associate/Assistant Superintendent

Directors, Coordinators

Treasurer

Administrative Exemption:

Administrative Assistant

Principals

Assistant Principals

Head Teacher

Curriculum Specialist

Attendance Director

Director/Coordinator of Services

Supervisor of Maintenance

Supervisor of Transportation

Food Services Supervisor

The following positions may appear to be exempt administrative employees; however, under these conditions would be classified as non-exempt: “administrative assistants” (such as the secretary to the Superintendent) who primarily spend their time doing secretarial work, not managerial work; maintenance, transportation, or child nutrition supervisors who primarily perform manual or non-office work.

Professional Exemption:

Librarian

Remedial Specialist

Counselor

Teacher

Dentist

Professional Accountant

Physician

Psychiatrist

Psychologist

Registered Nurse

School Nurse

Attendance Office

Social Worker

Physical/Occupational Therapist

Dental Hygienist

Audiologist

Psychometrist

The following positions may appear to be exempt professional employees; however, under these conditions would be classified as non-exempt: computer personnel who do not (a) perform work requiring highly specialized knowledge in systems analysis, programming, or software engineering; (b) work as a systems analyst, computer programmer, software engineer or similarly skilled worker; and (c) consistently exercise discretion and judgment; or social workers (a) whose college degree is not in social work and (b) who do not perform work that is predominantly intellectual in character and requires the consistent exercise of discretion and judgment.

Non-Exempt Employees:

Aide

Paraprofessionals

Autism Mentor

Accountant/Auditor

Buyer

Braille or Sign Language Specialist

Clerk

Secretary

Receptionist

Computer Technicians

Draftsman

Media Worker

Inventory Supervisor

Accounts Payable Supervisor

Payroll Supervisor

Audio Visual Technician

Maintenance Worker

School Bus Operator/Truck Driver

Heavy Equipment Operator

Cafeteria Worker

Custodians

Groundsman/Watchman

Sanitation Plant Operator

Licensed practical nurses

An employee’s “primary duty” is critical in determining whether the employee is exempt from the requirements of the FLSA. In most cases, the primary duty consumes the majority (over fifty percent (50%) of the employees time. All employees who are determined to be non-exempt must be compensated for all hours worked on behalf of the employer at the Federal minimum wage, and compensated for all hours worked beyond forty (40) in a workweek at time and a half (1 1/2) of their regular rate of pay for that workweek.

Consequently, all hours worked by non-exempt service personnel on behalf of the school system must normally be included in the computation, including the attendance of meetings and workshops, travel between work assignments, extra-curricular and extra-duty assignments, such as extra bus runs, working in an after school program, or coaching, and taking work home in the evenings or on weekends. The employer is responsible for maintaining a weekly record (timesheet) of ALL hours worked by non-exempt employees to ensure that the requirements of the FLSA are followed.

On the other hand, employees who are determined to be exempt from the FLSA, such as teachers, are exempt from all requirements, including minimum wage and overtime, and the employer is not required to maintain a record (timesheet) of hours worked.

In making the determination as to which employees are exempt from the FLSA, one should always keep in mind that FLSA exemptions are subject to the rule of strict construction and are narrowly construed against an employer, which has the burden of proving an exemption. Courts focus on the actual activities of employees in determining their exempt status under the FLSA, and need not rely on resumes and position descriptions that maybe vague or contradictory to the employees’ testimony concerning their day-to-day job activities.

Personnel who are employed by a school district on a temporary, part-time basis and whose “primary duty” for the District meets the “white-collar” exemption tests, such as a certified coach, may be considered to be exempt, since coaches are considered teachers. The salary and salary basis requirements of the FLSA do not apply to bona fide teachers.

Personnel employed on a temporary, part-time basis as athletic trainers, however, are not considered teachers and, therefore, may not meet the “white-collar” exemption tests. The salary and salary basis requirements do apply to athletic trainers, as well as all exempt personnel other than teachers. To be exempt, an employee must be compensated on a salary or fee basis at a rate not less than $455 per week and must meet the other tests described in Section C.3. for a learned professional.

You may contact the Law Offices of Rose H. Robbins for a free consultation to see if you have a case for unpaid overtime or minimum wages by calling (954) 946-8130 or by filling out the confidential form below. If our office decides to accept your case and we enter into a written, signed retainer agreement you will not have to pay anything unless we win your case. Appointments are available at various locations in Palm Beach, Broward and Miami-Dade Counties.

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Filed under Accountant/auditor, Aide, Autism Mentor, Cafeteria Worker, Clerk, Compensable time under FLSA, Computer technicians, Custodians, Exempt, FLSA payroll records, Heavy equipment operator, Improper classification, Maintenance worker, Misclassification, Non-exempt, Receptionist, School bus operator/truck driver, Secretary