BLOGS: Fair Labor Standards Act Law

Friday, January 27, 2012, 4:23 PM

When “letting off steam” becomes protected activity under the FLSA

By: The Womble Carlyle Team

The Fourth Circuit Court of Appeals today held that an employee who complains to her employer about alleged violations of the Fair Labor Standards Act is protected from retaliatory action from the employer. In Minor v. Bostwick Laboratories, Inc., 10-1258, the court joined the majority of circuit courts of appeals in giving a broad interpretation to the anti-retaliation provisions of 29 U.S.C. § 215(a)(3). Although prior Fourth Circuit authority appeared to require an employee to file a formal complaint with the Department of Labor or the court, today’s opinion makes clear that an employee’s intracompany complaint to management will be sufficient to warrant protection. Ms. Minor had complained to a senior executive that she believed her supervisor was altering time cards to eliminate overtime. The executive responded that he would look into it. A few days later, the company terminated Ms. Minor allegedly for being disruptive in the workplace. She sued claiming illegal retaliation.

The court recognized that employees simply letting off steam will not be sufficient to invoke the protection of the FLSA. The employee’s report to the employer must be “sufficiently clear and detailed for a reasonable employer to understand it, in light of both content and context, as an
assertion of rights protected by the statute and a call for their protection." The court did not decide if the facts of the case supported a verdict. It simply decided that Ms. Minor had alleged enough facts to pursue the claim.

Employers need to be careful in how they respond to employee complaints regarding wage and hour issues.

By David Yandle

Mr. Yandle represents employers in all facets of employment law, including Title VII, ADA, ADEA, FLSA and FMLA.

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Friday, January 13, 2012, 12:45 PM

Revenge of Dukes - Another One Bites the Dust

By: The Womble Carlyle Team

Relying on Wal-Mart v. Dukes, the US District Court for the Central District of California in Aburto v. Verizon California, Inc. has found no “commonality” in Rule 23 class claims brought by a Verizon “First Level Manager” in its fiber-optic cable workgroup. Since the claims were raised under California law and not under the FLSA, the “relatively lenient” collective action certification rubric did not apply, so traditional Rule 23 class principles were in play. Plaintiff failed to satisfy the court that common, class-wide questions of law and fact predominated; instead, individual assessments would need to be made, thus dooming the class action. Expect an appeal.

Click here to read the full opinion.

Horton Hears a WHAT?

By: The Womble Carlyle Team

Can the National Labor Relations Board reverse the Supreme Court? These days, nothing seems impossible, but the attached NLRB order, D. R. Horton, Inc., is remarkable both for its disregard of the decision last April in AT&T v. Concepcion, ___ U.S. ___, 131 S.Ct. 1740, which approved the signing of class action waivers in consumer contracts requiring arbitration, and for its delving into the province of the Department of Labor. At issue was an employer-required “mutual arbitration agreement,” challenged by a construction superintendent. The problem came to a head when the superintendent’s attorney informed the employer that he had been retained to represent a class of superintendents who claimed they had been misclassified as exempt executives. When the employer replied that there had been no notice of intent to arbitrate, the superintendent filed an unfair labor practice charge.

Click here to read the full opinion.

Wednesday, December 21, 2011, 2:19 PM

Obama Moves To Extend Wage Protections To Home Care

By: The Womble Carlyle Team

The Obama administration revealed a proposal Thursday to extend minimum wage and overtime protections to nearly 2 million in-home care providers by revising federal rules on the exemption for companion workers.

After several legislative proposals to expand coverage languished in Congress, the White House opted to narrow the exemption by having the U.S. Department of Labor update its rules on what duties a companion could have under the Fair Labor Standards Act.

Click here to read more from Law360.com...

Friday, December 16, 2011, 3:46 PM

The Fluctuating Workweek and Commission Pay

By: The Womble Carlyle Team

We’ve noticed some cases recently filed challenging employers’ use of the fluctuating workweek method to determine the overtime compensation for employees who receive commission payments. Plaintiffs are alleging that this practice is not permitted by the Fair Labor Standards Act (FLSA) when employees earn commissions in addition to their salaries. However, this issue is unresolved, and precedent seems to favor the employer defendants.

The fluctuating workweek method is permitted by FLSA regulation 29 C.F.R. § 778.114, promulgated by the Department of Labor to implement the Supreme Court's holding in Overnight Motor Transp. Co. v. Missel, 316 U.S. 572, 580 (1942). This method permits employers to pay non-exempt employees pursuant to the fluctuating hours method if five criteria are met:

1. The employee's hours must fluctuate from week to week;

2. The employee must receive a fixed weekly salary that remains the same regardless of the number of hours worked per week;

3. The fixed salary must be sufficient to provide compensation at a regular rate not less than the legal minimum wage;

4. The employee must receive at least 50 percent of his regular hourly pay for all overtime hours worked; and

5. The employer and the employee must have a clear mutual understanding that the fixed salary is compensation (apart from overtime premiums) for the hours worked each workweek.

Click to read more from Employer Law Report...

Monday, November 7, 2011, 12:30 PM

Dr Pepper Hit With Wage Suit Over OT, Lunch Breaks

By: The Womble Carlyle Team

Employees of Dr Pepper Snapple Group Inc. on Friday launched a proposed class action in Florida federal court, claiming the beverage giant unlawfully deducted lunch breaks from pay and withheld overtime compensation.

Lead plaintiff Rony Mitial lodged a suit on behalf of several hundred current and former Dr Pepper Snapple Group employees, claiming the company and its subsidiary American Bottling Co. failed to adequately compensate employees, in violation of the Fair Labor Standards Act.

Click to read more from Employment Law360...

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Friday, October 14, 2011, 4:36 PM

Ex-Hostess Tackles Colts In FLSA Minimum Wage Suit

By: The Womble Carlyle Team

An ex-hostess launched a putative collective action Wednesday accusing the Indianapolis Colts of running afoul of the Fair Labor Standards Act by failing to pay hostesses, who attend to people in the press box area of the Colts' stadium, the federally required minimum wage.

Read the case.

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