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Category Archives: Class Actions

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Carnival Workers Get Conditional Certification In Case Where Lawyers Sought To Depose Their Own Lead Plaintiff

Posted in Class Actions

A few weeks ago, I posted about the unique (i.e. strange) situation of the plaintiff’s lawyer in this case seeking to depose his own client. There has been a new development in this case and it is one that dwarfs the importance of the other issue. The workers, who have accused their amusement park employer… Continue Reading

Secret Service Hit with Overtime Suit on Off-The-Clock Work

Posted in Class Actions, Exemptions, Overtime Issues

As if the Secret Service did not have enough headaches to go around!  Now, the beleaguered agency has been hit with a class action lawsuit filed by information technology and telecommunication specialists, who allege they were not paid for extra work that was not reported/recorded.  The case is entitled Alvarez et al. v. U.S. and… Continue Reading

New Jersey Missclassification Wage and Hour Suit

Posted in Class Actions, Independent Contractor

An interesting case coming out of New Jersey… We often blog about “misclassification” which is a laconic way of referring to the misclassification of employees as something other than employees, such as independent contractors.   Home Depot is experiencing this right now as it responds to a group of cleaning workers who claimed Home Depot failed… Continue Reading

Payless Shoes Settles Another FLSA Executive Exemption Misclassification Suit

Posted in Class Actions, Exemptions, Overtime Issues

On the crest of the FLSA collective action wave that has swept the nation in recent years is the never-ending parade of exemption misclassification cases targeting Manager/Assistant Manager positions.  In yet another iteration of this phenomenon, Payless Shoesource Inc. has agreed to settle such a class action for just under $3,000,000.   The case is entitled… Continue Reading

Plaintiff’s Counsel Wants To Depose His Own Client in FLSA Collective Action: Really?

Posted in Class Actions

This is great!  A FLSA collective action filed against an amusement park company.  A lead plaintiff and other plaintiffs added.  So far, so good.  Then, one of the lead plaintiffs settles independently with the employer and now the plaintiffs’ lawyer, this person’s lawyer (former lawyer) wants to depose his own client.  The company is strongly… Continue Reading

Skadden Case on Lawyer Overtime/Exempt Status Argued Before Second Circuit

Posted in Class Actions, Exemptions, Overtime Issues

I have been following this protracted saga for some time and there is another chapter now being written.  The law firm of Skadden Arps is being sued in a Fair Labor Standards Act collective action by lawyers claiming they were not doing legal work because all they did was document review.  In argument before the… Continue Reading

Another FLSA Off-the-Clock Case: Employees Allegedly Ordered Not To Report Time

Posted in Class Actions, Overtime Issues

I have posted numerous times about the dangers of (and the escalation of lawsuits) involving claims of off-the-clock work. Well, here we have yet another example.  A $450,000 settlement has now been approved in a case in which admissions representatives at a chain of cosmetology schools claim they were required, under an unwritten policy, to… Continue Reading

Attorney Client Privilege No Defense! – Turnover of Client Communications on Exempt Status Ordered

Posted in Class Actions, Exemptions

A federal judge has ordered Chipotle Mexican Grill to turn over attorney-client communications because the Company failed to meet a “good-faith” compliance requirement under federal law.  This is a FLSA collective action case where the theory was that the chain misclassified a group of workers as exempt from overtime under the executive exemption of 29… Continue Reading

Choice of Law Provisions and Class Actions

Posted in Class Actions

Picture this: you’re enjoying a lovely evening with friends inside a hole-in-the-wall restaurant in Brooklyn.  As the evening is winding down, the clouds open up and give way to a torrential down-pour.  You think to yourself, “How am I possibly going to hail a cab in this weather…and in Brooklyn of all places.” Luckily, you… Continue Reading

Misclassification can lead to big trouble

Posted in Class Actions, Exemptions, Overtime Issues

We often blog about how important it is for employers to carefully evaluate their practices to ensure they are not misclassifying employees who are legally non-exempt, as exempt employees, and failing to pay them overtime.  A large national shipping company was ordered to pay $2 million dollars to settle managers over time claims after it… Continue Reading

Employer’s Wage Issues with Students on J-1 Visas

Posted in Class Actions, Overtime Issues

It’s not uncommon for employers to employ workers on various non-immigrant visas.  Recently, a high profile case finally settled but it cost the former McDonald’s franchisee a hefty sum as well as a lot of bad publicity.   After years, the DOL’s Wage and Hour Division reached a settlement with the former McDonald’s franchisee for back… Continue Reading

Skadden Case Will Bring More Focus On Issue of “Non-Exempt” Attorneys

Posted in Class Actions, Exemptions, Working Time

I have been following the series of lawsuits filed by attorneys who claim they were not performing “attorney” work and are therefore entitled to overtime in collective and class actions filed under the Fair Labor Standards Act. Now, the major law firm of Skadden Arps, in defending one such suit, has filed a motion to… Continue Reading

Avis Loses De-Cert Motion In Shift Managers FLSA Collective Overtime Action

Posted in Class Actions, Overtime Issues

When a class becomes conditionally certified in a FLSA collective action, the only weapon (absent settlement) that the defendant-employer then is left with is a motion to de-certify the class and reduce the litigation to a single plaintiff. Putting all of one’s eggs in that basket is risky, because if that overture fails, the plaintiffs… Continue Reading

Wage and Hour Class Actions

Posted in Class Actions, Exemptions, Overtime Issues

Certain types of employees, who are classified as exempt employees, are not entitled to overtime pay as guaranteed by the FLSA.  It follows that non-exempt employee are entitled overtime if they work more than 40 hours per week.  A recent settlement highlights some of the issues that can arise when employees are misclassified as exempt,… Continue Reading

Huge Settlement in FLSA Bank of America Case Highlights Prudence of Getting Out Early

Posted in Class Actions

A settlement has just been approved whereby Bank of America will pay $73 million to end a multidistrict litigation in which a class of 180,000 hourly employees accused the Company of compelling them to work off the clock. The Court approved the settlement, notwithstanding that it noted that the plaintiffs, a class of retail banking… Continue Reading

Starbucks Tip Pooling Case – New Rule for New York Employers

Posted in Class Actions

About a year ago, Mark blogged about a tip pool case involving Starbucks where the tip credit (allowing employers to pay a sub-minimum wage) was destroyed when “improper” people (i.e. managers) shared tips along with rank-and-file employees.  Mark explained that the liability in these cases can be astronomical because the employer has to pay the difference between… Continue Reading

Paying Employees By Debit Card May Be A Problem

Posted in Class Actions

Nowadays, many employers are not giving employees paper checks. Nowadays, people usually/often get direct deposit although many states mandate that an employer cannot compel employees to accept direct deposit. To cut down on problems and potential thefts, etc, many employers have recently gone to paying employees with debit cards, analogous to the “gift cards” that… Continue Reading