Those were the critical issues in a precedential decision that the Third Circuit Court of Appeals issued yesterday. So let’s talk about it. Continue reading
A company operating an offshore oil rig paid one of its “tool pushers” anywhere from $963 to $1,341 per day. His paycheck, issued every two weeks, amounted to his daily rate times the number of days he had worked in the pay period. So if the employee had worked only one day, his paycheck would total (at the range’s low end) $963; but if he had worked all 14 days, his paycheck would come to $13,482. Under that compensation scheme, the company paid the employee over $200,000 annually, with no overtime compensation.
But, the employee who supervised many others and otherwise satisfied the duties tests for the executive exemption under the Fair Labor Standards Act sued for unpaid overtime because, he claimed, the company failed to guarantee him at least $455 per week in salary. Continue reading
Earlier this month, the U.S. Department of Labor announced that an investigation into a Japanese restaurant had uncovered violations of federal wage and hour laws, resulting in 75 servers, sushi, and hibachi chefs not receiving all of their legally earned wages.
The final bill was $171,834.
That’s a lot of toro and high-end sake. Continue reading
Folks, someday, the U.S. Department of Labor’s Wage and Hour Division (WHD) may darken your door to audit your books and records. Perhaps, they’ll find a violation and require you to pay back wages and liquidated damages. If your next steps involve retaliating against employees who cooperate with investigators and demanding kickbacks of back wages, you will compound those problems.
I told you so.