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Temperature Checks and the FLSA

Changing Workplace Culture during COVID-19 As with most aspects of life, COVID-19 has changed the daily routine of many workers. Today, the average worker is usually asked to have their temperature checked before beginning their workday. While the effectiveness of the practice in preventing the spread of the virus is debatable, the practice is currently required by many employers. Currently, the Equal Employment Opportunity Commission, a federal agency that enforces civil rights in the workplace, has stated that while conducting temperature checks does not violate the Americans With Disabilities Act, it may violate the Fair Labor Standards Act (FLSA) and some state employment compensation laws. These temperature checks may be a violation of the FLSA because employees who have to spend several minutes waiting their turn for the check may be uncompensated for this time. The FLSA states that activities that are an “integral and indispensable part of the principal activities” of an employee are compensable. While activities that are preliminary and postliminary to principle activities are not compensable under the FLSA. When an employee cannot perform his “regular” job without first engaging in the preliminary activity, then the preliminary activity becomes ‘integral and indispensable’ and therefore compensable. Temperature Checks and Compensation These temperature checks could be argued to be ‘principle’ or ‘preliminary’ depending on your perspective. Time spent by employees putting on and taking off protective gear and walking between their work station and the protective gear changing areas were both deemed compensable activities. So, if we could liken the temperature check to being a protective measure against infecting their fellow employees like putting on protective gear would likely be a principle and compensable activity. However, the Supreme Court has ruled that time spent waiting to put on protective gear is not a compensable activity. Since waiting in line for the temperature check will likely be the most time-consuming activity, this activity may be considered preliminary and non- compensable. Depending on how the federal or state courts rule on this issue, employers could face potential wage and hour claims related to this activity. It may be most advisable to employers to compensate the temperature checks before this becomes a litigated issue.   - Audrey Bidwell

File a Lawsuit for Unpaid Overtime in Ohio

What Kind of Results Can I Expect if I File a Lawsuit for Unpaid Overtime in Ohio?

No Ohio employee rights attorney can guarantee the outcome of an unpaid overtime lawsuit. Winning is not a sure thing, and the amount of money that can be claimed in the event of succeeding at trial or negotiating a settlement depends on too many factors to calculate accurately. So, we will never be able to tell anyone precisely how things will end. However, we understand that clients in unpaid wage cases want to know what they should expect to go through when they sue their current or former employee. That is a question we are prepared and happy to answer. Still, we cannot include every detail here, and your situation may present some unique challenges we have not anticipated. Please contact us online or call Barkan Meizlish DeRose Cox, LLP at (614) 221-4221 to schedule a free confidential consultation if you need more information or wish to pursue an unpaid overtime lawsuit. First, Know Whether You Have Grounds to File an Unpaid Overtime Lawsuit Under a federal law called the Fair Labor Standards Act (“FLSA”), hourly workers who do not manage other employees and who earn less than $455/week ($35,568/year) are eligible to earn overtime pay. The legally mandated overtime pay rate is 1.5 times the eligible employee’s hourly wage, and overtime starts after an employee has worked 40 hours during a 7-day workweek. Nearly all employees who traditionally receive tips, such as wait staff and bartenders, are eligible to earn overtime, but are also often eligible to be paid a lower hourly rate. On the other hand, some skilled professionals and salespeople who get paid hourly are not eligible. The rules regarding exemptions from overtime eligibility become pretty complicated pretty quickly. Feel free to ask an unpaid wage attorney if you are unsure whether you meet the criteria for earning overtime. Consider Talking to Your Coworkers or Former Colleagues Employers use a variety of tactics to deny overtime pay. A few of the most common are Misclassifying employees as managers or nonemployee independent contractors, Telling employees they must work unpaid overtime in order to keep their jobs, Inappropriately counting tips as a component of hourly pay, and Playing games with comp time in lieu of paying overtime. Checking with coworkers or the people they used to work with to learn if such problems are occurring will give a worker a sense of whether they have grounds to file an unpaid overtime lawsuit. Also, groups of people who worked for the same employer can join together to take collective legal action against a company that underpaid them. Collective actions can have a great chance of succeeding in court than lawsuits filed by individuals. Understand That There Will Be a Lot of Paperwork Proving that an employer violated overtime rules requires collecting and analyzing pay stubs, timesheets, corporate records and internal communications between supervisors and managers. An attorney who has experience in handling unpaid wage cases will know how to compel an employer to share all the necessary information. It will also be helpful for you to gather any documents that have your pay or time information on them and provide them to your attorney as soon as possible. Do Not Be Surprised if Your Employer Pushes Back Federal employment regulations call demanding fair pay for all the hours that one works “engaging protected activity.” It is illegal for an employer to retaliate against an employee who engages in protected activity, but it is not uncommon. Data released by the U.S. Equal Employment Opportunity Commission in February 2020 show that retaliation was the number-one complaint the agency received during the previous fiscal year, accounting for nearly 54 percent of the cases. When supervisors and managers harass, insult, demote, or fire an employee who files an unpaid overtime lawsuit, that employee also has the right to file a workplace retaliation lawsuit. Recognize That the Hassle Can Be Worth It A worker who wins their unpaid overtime lawsuit receives the payments they were originally denied, interest on the back pay, and other monetary damages. The court may also issue orders for the company to improve its pay practices or face further fines.

I’m Salaried, So I Shouldn’t Get Overtime, Right? Not Necessarily.

Salaried Employees Can Be Either Exempt or Not Exempt There is a common misconception that “salaried” means “exempt” under the Fair Labor Standards Act (“FLSA”) or Ohio wage laws. While many exempt employees are salaried, not all salaried employees are exempt. This results in underpayment for employees who are entitled to at least minimum wages for all hours worked, and overtime pay for hours worked in excess of 40 in a workweek. Overtime for Non-Exempt Employees Overtime pay is calculated at a rate of one and a half an employee's "regular rate". If a non-exempt employee is hourly, then the regular rate is usually their hourly rate. If the non-exempt employee is salaried, the regular rate is their hours worked in a workweek divided by the amount of salary attributed to that workweek. The regular rate should also be used for purposes of calculating such things as non-discretionary bonuses or safety incentive payments. While a thorough consideration of all the facts may lead to the ultimate conclusion that your are indeed exempt, you should not automatically accept an “exempt” status simply because you are a salaried employee and/or because your employer says so. Salaried employees whose hourly pay per week ends up being less than the required $7.25/$8.70 should call us at 800-274-5297. Additionally, employees who work more than 40 hours in a workweek but do not receive an overtime can also reach out.  Remember, it is unlawful for an employer to retaliate against you for asking questions about your hours worked and wages paid, exercising your rights under the FLSA and/or Ohio wage and hour laws. Note that this is not the same “exemption” as used concerning your taxes. See for example Withholding Exemptions - Personal Exemptions - Form W-4 See for example DOL Fact Sheets 17a and 17g. This post was first published in 2017. The Ohio minimum wage was $8.10 at the time. Updates reflect the 2020 minimum wage in Ohio. (This Notice is for informational purposes. It is not legal advice). Originally published on June 14th, 2017

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Call Center Industry and Wage and Hour Violations

Call Center Employees Affected by Wage Theft In today's age of technology and convenience, customer service is often only a phone call or instant message away. With an increasing consumer demand for faster support and quicker turnaround times, it seems that more industries than ever have turned to call centers as a means to provide streamlined service to their customers. Call center employees are essential service providers for customers in need of guidance. Sadly, mistreatment is common. Unfortunately for Customer Service Representatives (“CSRs”), call centers are one of the most common places for companies to commit wage violations, These violations can be accidental or intentional, depending on the centers management. Under the Fair Labor Standards Act ("FLSA"), covered nonexempt employees are entitled to receive minimum wage for all hours worked, and overtime compensation at one and one-half times their regular rate of pay for all hours worked in excess of 40 in a workweek. Today, numerous call centers across a variety of business channels call central Ohio home, including Teleperformance, Call Management Resources, ContactUS Communications, and Total Quality Logistics all operate facilities in the Columbus area. Nationwide, Verizon, DISH, JPMorgan Chase, and Randstad also operate centers in the surrounding vicinity. FLSA Violations and Call Centers When centers expect their employees to perform unpaid “off-the-clock” work, problems arise. This type of work is a direct violation of the FLSA. Call center employees must receive paid for time spent performing everyday duties. These duties include: turning on/off computers logging in to programs making pre- or post-call notes attending work-related meetings working through lunch participating in work-related training If you work in a call center and are not being properly paid wages you have earned, an attorney can help. You can call for a free consultation at 800-274-5927. You may have a viable claim and we can help you determine the best course of action. The team at Barkan Meizlish DeRose Cox, LLP is here to help. originally published on March 13th, 2018

How Can I File a Wage and Hour Lawsuit in Ohio

How Can I File a Wage and Hour Lawsuit in Ohio?

“A fair day’s pay for an honest day’s work,” is such an ancient principle that versions of it appear in the Bible and even earlier writings. The concept was enshrined in U.S law during the 1930s with adoption of the Fair Labor Standards Act, or FLSA, which mandates the payment of a minimum wage and eligibility for overtime pay. The general rule for most people is that they earn overtime after they work more 40 hours over the course of a single week. For nearly 90 years, employers have violated the FLSA. They commit wage theft and refuse to pay overtime in many ways, including Misclassifying employees as independent contractors, Miscategorizing hourly workers as managers, Forcing people to work off the clock, Docking pay excessively for supplies and policy violations, Promising but never authorizing comp time leave instead of paying overtime, Stealing tips, Miscalculating tips as part of the hourly wage, and Telling tipped employees they are not eligible for overtime. The good news is that the FLSA gives workers the right to report wage theft and unpaid overtime. The process of compelling an employer to hand over back pay and compensatory damages often seems daunting, which is why we make our services available as wage and hour attorneys in Ohio. Know the Rules During 2020, Ohio set the minimum wage for the majority of workers at $8.70 per hour. Tipped employees could legally be paid $4.35 per hour as long as their tips ensured they averaged a pay rate of at least $8.70 per hour. If the tips come in short, the employer must make up the difference. Individuals who work for U.S. government agencies in Ohio are guaranteed only the federal minimum wage of $7.25. At all types of employers, people who get paid by the hour and earn less than $455 per week can earn overtime at a rate that starts at 1.5 times their usual hourly pay. Exemptions apply to eligibility for the Ohio and federal wage and overtime rules, however. For instance, managers and independent contractors do not have rights to demand the minimum wage or overtime. Speaking with an employee rights attorney when an employer says you are not covered by the FLSA can help clarify your situation. Keep Track and Ask Coworkers Rules put in place for enforcing the FLSA allow workers to ask their managers and supervisors about hours, wages, and overtime. It is also legal for coworkers to talk to each other about what they are being paid and to compare pay stubs. Such discussions among coworkers can identify patterns of wage theft and unpaid overtime that provide grounds for a collective or class action lawsuit. As employee rights attorneys, we understand that workers may hesitate to exercise these rights to ask about and advocate for fair pay. Retaliation from managers happens far too frequently. The thing to remember is that penalizing, bullying, or firing a worker for raising issues related to wages is also illegal and can serve as the basis for a lawsuit. Act Fast and Know Where to Report Wage and Hour Violations The statute of limitations on filing claims for wage theft and unpaid overtime is two years. The clock starts ticking on the day of the last violation. When a claim is filed, all past instances of unfair pay can be part of the complaint. Individuals who work under the laws of Ohio must contact the Department of Commerce’s Division of Labor and Worker Safety. Federal employees file their complaints with the U.S. Department of Labor’s Division of Wages and Hours. Working with an Ohio wage and hour attorney can make going through the process and holding an employer accountable easier. The lawyer will know how to prepare and submit paperwork, and also how to obtain the corporate records that are needed as evidence. Gaining access to those records will be particularly important for determining whether it makes sense to pursue a collective or class action lawsuit. You can schedule an appointment with a Columbus employment attorney at Barkan Meizlish DeRose Cox, LLP, by calling (614) 221-4221 or by connecting with us online. The initial consultation is free, and all communications with potential clients are kept strictly confidential.

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How Victims Of Wage Theft Can Fight Back: Fee-Shifting Protections and the FLSA

My Employer Didn’t Pay Me Correctly but I Can’t Afford an Attorney, Now What? Have you ever worked somewhere that didn’t pay you on time, or didn’t pay your wages properly? If yes, you probably talked about it with a friend or family member who suggested you pursue legal action. Your response may have been that you couldn’t afford a FLSA attorney, you didn’t have the time to pursue it, or that the time and cost it would take wouldn’t be worth it since it wasn’t THAT big of a deal. If you’ve ever been the victim of wage theft, you may have found yourself in this difficult position. The big question facing most victims of wage theft is- is pursuing this legally worth the money that I lost? You are not alone in this experience. Fortunately, this does not have to be your reality and there are attorneys that will help you with no cost out of pocket to you! Under the federal law, 29 U.S.C.sec216(b), recovery of attorney’s fee is a required aspect of a Fair Labor Standards Act (FLSA) violation claim. In simpler terms, this means when a successful FLSA claim is filed, the Court can make it the employer’s responsibility to pay for the cost of your attorney’s services. This is incredibly important for victims of wage theft and other violations of the FLSA to be aware of, as it can be the deciding factor for many who are on the fence about pursuing legal action. What Does This Mean for Me? As the victim of wage theft, these rules and guidelines help ensure that even the most seemingly harmless cases (emphasis on ‘seemingly’) are taken seriously by the American legal system. Often, the monetary value of a wage theft complaint is less than the potential cost of legal assistance for resolving the issue. This shifting of the attorney fees from the employee to the employer in wage theft cases is meant to eliminate the issue that may deter employees from pursuing legal action. With the federal minimum wage set at $7.25, many hourly employees are not capable of retaining legal counsel, and the fee shifting structure of the law eliminates that concern. The FLSA allows employees an opportunity to fight against an employer who has done them wrong, no matter how small the amount of wages stolen. However, it is also important to note that the statute necessities that a plaintiff receive a judgement in their favor, rather than the employers favor, for the fee-shifting to be upheld by a court. Okay, I Want to Take My Claim to Court Hopefully, this information has given you some peace of mind and let you know the most important part of all of this: you deserve to be treated fairly by your employer. Your next step is to contact an attorney and discuss your case. The Paycheck Warriors at Barkan Meizlish DeRose Cox, LLP are here to help. Send us an email at info@barkanmeizlish.com or give us a call at (800)-274-5297 for more information.

Ohio Prevailing Wage Rights Law

Ohio Prevailing Wage Rights Law

What is the Prevailing Wage in Ohio When completing contracted work with the government, most workers, laborers, and skilled tradespeople are entitled to the prevailing wage. Prevailing wages are established by governmental regulatory industries and are determined by the type of trade and occupation for the public works project. If you are working on a public construction project in the state, then you need to understand Ohio prevailing wage rights. An Ohio prevailing wage attorney, like those at Barkan Meizlish LLP, can assist you in fully understanding the prevailing wage standards that are in place. If you are involved in a public works project in any capacity and have questions regarding the prevailing wage standards, do not hesitate to contact the prevailing wage attorneys at Barkan Meizlish DeRose Cox, LLP. Prevailing Wage Basics Chapter 4115 of the Ohio Revised Code defines the prevailing wage and when it should be applied. If a state or local government agency hires private contractors to complete a construction project, they must pay the prevailing wage. The prevailing wage must reflect the total hourly dollar value of: Pension Apprenticeship programs Other contractually obligated fringe benefits Hourly pay Vacation and paid holidays Health insurance Life insurance Contractors can only claim an exemption from paying the prevailing wage if the project costs less than $250,000 to complete. Complying with Ohio Prevailing Wage Prevailing wages change every two years based on collective bargaining agreements between various unions and a governmental organization. As a result, the prevailing wage differs for each type of skilled trades person and in different localities. This means that a mason on a public works project in Summit County will receive a different prevailing wage than a mason in Franklin County. The two tradesmen can also have different wages if they are part of different unions. Here are some of the unionized tradespeople covered under prevailing wage law: Boilermakers Bricklayers Cement Masons Drywall finishers Electricians Elevator installers and inspectors Glaziers Insulators Ironworkers Laborers Painters Plasterers Plumbers Roofers Sheet metal workers Sprinkler fitter Overtime Pay under Prevailing Wage Legislation All workers, even those not subject to prevailing wage legislation, are subject to overtime pay at a rate of 1.5 times their prevailing wage. This applies to all non-exempt employees who exceed 40 hours in a given work week. Though their base pay rate is typically higher than non-unionized employees, tradespeople covered by prevailing wage legislation are also entitled to overtime pay. Contact Us If you are part of a public works construction project in any facet, you should understand your rights under Ohio prevailing wage law. Our dedicated, professional legal staff can help answer any questions about prevailing wages or other labor-related matters. The Columbus prevailing wage attorneys with Barkan Meizlish DeRose Cox, LLP are skilled and experienced in helping clients navigate wage laws to build a case against an employer not paying them the lawful wage. Gathering documentation through paystubs, bank statements, and timecards can be a difficult task to complete alone, so don’t hesitate to contact our wage attorneys in Ohio to review your case and give you a free consultation. Tags: Ohio Prevailing Wage Rights, Prevailing Wage Ohio 2018

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The DOL's Payroll Audit Independent Determination program

Too often, employers take advantage of their employees, with the employer typically leveraging its superior knowledge of the law. Employees forced to resort to legal action against their employers often face powerful and sometimes obstructive employers, but also benefit by representation from fierce attorney advocates who have the employee’s best interests in mind. Unfortunately, a recently announced U.S. Department of Labor’s (“DOL”) program may end up hindering employees’ ability to have their day in court with the aid of their chosen advocate. On March 6, 2018, the DOL’s Wage and Hour Division announced a six-month pilot initiative referred to as the Payroll Audit Independent Determination (“PAID”) program. The PAID program will allow an employer to conduct self-audits of their payroll practices and voluntarily report underpayments to the DOL which, in turn, will supervise the back wage payments. Yet to be tested, the new program is touted as a way for employees to receive the wages they are owed faster without having to wait for litigation and as a means of correcting an employer’s underpayment of wages to employees. However, the PAID program potentially harms employees more than it will help them. The settlements that the DOL supervises do not mandate liquidated damages. Liquidated damages are an amount paid in addition to unpaid wages. The purpose of liquidated damages is to discourage employers from unlawfully withholding wages, only to pay them if they get caught; in which case the employer essentially enjoys a consequence-immune interest-free loan. Under the apparently employer-friendly PAID program, employers may be able to do a low cost review, and have the DOL approve repayment of back wages without further liability, and without the fierce legal advocate acting on behalf of the employee. Further, employees who submit to this route for reimbursement of their owed wages will give up their right to bring a lawsuit against their employer for the payment of unpaid minimum wages or unpaid overtime compensation. The National Employment Law Project, a worker advocacy group, said it opposed the program. Judy Conti, a federal advocacy coordinator for the National Employment Law Project, said the PAID program is an effort to “stack the deck in favor of employers” and acts as a “get out of jail free card” for them. Note that the program cannot be invoked when the violation is already at issue in litigation, in arbitration, or already under investigation by the DOL/WHD. Also, remember that wage and hour claims under the FLSA are typically subject to a two year statute of limitations, which can only be extended to three years under certain circumstances. If you feel that you are not being properly paid wages you have earned, call Barkan Meizlish DeRose Cox, LLP for a free consultation at 800-274-5927. You may have a viable claim and we can help you determine the best course of action. (Advertising Material: This Notice is for informational purposes and should not be construed as legal advice).

U.S. Cargo & Courier Service, LLC – Independent Contractor Litigation

Hall et al. v. U.S. Cargo & Courier Service, LLC Case No. 2:16-cv-330 (S.D. OH) Attorneys: Bob DeRose, , Trent Taylor Practice Area: Wage and Hour/Overtime Violations On April 13, 2016, we filed a Complaint on behalf of a former delivery driver against U.S. Cargo and Courier Service. U.S. Cargo is a company that provides regional courier and small package delivery services to businesses and financial institutions throughout Ohio, Pennsylvania, and West Virginia. The Complaint alleges that U.S. Cargo improperly misclassified many of its delivery drivers as “independent contractors,” rather than employees. Because of the alleged misclassification, the former driver claims that U.S. Cargo wrongfully deprived him of rights and protections guaranteed to employees under Ohio and federal law, including overtime, unemployment insurance benefits, and workers’ compensation coverage. On November 1, 2017, we filed an Amended Complaint adding two additional former delivery drivers as plaintiffs to the lawsuit. In light of evidence that roughly 50 former drivers may have similar claims against U.S. Cargo, we filed a Motion for Conditional Certification requesting permission from the Court to notify other misclassified delivery drivers of their right to join this lawsuit. On March 9, 2018, the Court granted Plaintiffs’ Motion for Conditional Certification. The Order will allow similarly situated independent contractor delivery drivers who worked for U.S. Cargo throughout Ohio to be notified of the opportunity to join the lawsuit and pursue their duly owed pay. To inquire further about this case, please call 614-221-4221 ext. 1129 or email srasoletti@barkanmeizlish.com.

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Pizza Chain Owes

A pizza restaurant chain in Manchester, Connecticut was held liable for violating the Fair Labor Standards Act (FLSA). An investigation conducted by the U.S. Department of Labor’s Wage and Hour Division found that the pizza restaurant chain had violated the FLSA’s minimum wage, overtime, and record-keeping requirements between February 2013 and November 2015. The restaurant did not pay one-and-one-half their regular rates of pay to three employees who worked overtime hours up to seventy-five hours per week. Additionally, the restaurant took payroll deductions for cash register shortages that resulted in one employee receiving less than minimum wage. The investigation also found that the restaurant maintained and supplied false time and payroll records and statements to investigators during the current investigation and a prior investigation in 2015. Additionally, the investigation found that between December 2015 and April 2016, the owner of the restaurant continually pressured one employee to make false statements to investigators, leading the employee to believe he had no choice but to resign. The Department of Labor charged that the owner’s behavior resulted in the worker’s constructive discharge, in violation of the FLSA’s anti-retaliation provisions. Therefore, on November 16, 2017, a United States District Court in Connecticut issued a judgment against Chemro LLC d/b/a People’s Choice, and Defendant Robert Y. Mercier II for back pay in the amount of $67,151.14, which includes minimum wage and overtime payments due, as well as liquidated damages, compensatory damages, punitive damages, civil money penalties, and interest. The Court also ordered that the company and its owner comply with the FLSA and “refrain from discharging or discriminating against employees who initiate or cooperate with an FLSA investigation.” The FLSA requires that most employees receive one-and-one-half times their regular rate of pay when they work more than 40 hours in a work week and that employers maintain adequate and accurate records of employees’ wages and work hours. If you feel that you are not being properly paid wages you have earned, you should call our unpaid wages lawyer for a free consultation. You may have a viable claim and we can help you determine the best course of action after thorough consideration of your situation. We can be reached at 800-274-5927. (Advertising Material: This Notice is for informational purposes and should not be construed as legal advice).

Baklava

Baklava Not Creative?

A Brooklyn federal judge has ruled that baklava chefs’ jobs were not “creative” to meet the Fair Labor Standards Act’s creative professional exemption from overtime pay. The judge held that this exemption requires “innovation and imagination,” not the “consistency and precision” displayed by the Turkish baklava and baked goods chefs when making their tasty treats. In a decision denying summary judgment to the defendants, the court held that the exemption defense failed because “although defendants adequately demonstrate that plaintiffs were experienced and talented , defendants not demonstrate how plaintiffs’ experience and talent were applied to an innovative and imaginative task.” The defendants, Gulluoglu, an entity that sells Turkish food at multiple locations, and its manager, failed to shoulder their burden of proving that its employees fell within the exemption. According to the court, “efendants did not sell their baklava and other baked goods in five-star or gourmet establishments, and plaintiffs, tasked with preparing baklava and other enumerated Turkish baked goods to be sold by third parties, did not have the autonomy to design unique dishes and menu items.” The plaintiffs, both former baked goods chefs for Gulluoglu, frequently worked 60 hour weeks, but were only paid a fixed weekly salary of $700. Although the plaintiffs’ skills and training were brought up in court, such as a plaintiff serving as an apprentice to a baklava maker in Turkey for seven years, deposition testimony showed that the baklava chef never prepared baklava from scratch. Rather, plaintiff would heat and apply a “sweet syrup” to frozen baklava imported from Turkey. Starting in 2010, however, the baklava was imported pre-cooked, with the syrup glaze already applied. Additionally, the pastry chef’s cakes were not made from scratch, but imported and defrosted. Defendants argued that “plaintiffs’ talent alone should trigger the exemption.” Yet, the court held that “he regulatory language makes clear that an employee talented at an unimaginative and unoriginal task does not fall within the exemption.” If you feel that you are not being properly paid wages, you should call our unpaid wages lawyer for a free consultation. The lawsuit was filed in the U.S. District Court for the Eastern District of New York, and is titled Eren v. Gulluoglu LLC, Case No. 15-CV-4083.

Virtual Workers and Economic Reality: Independent business owners file FLSA collective action for unpaid wages

Call center service provider Great Virtual Works is facing a collective action complaint for violations of the FLSA (Fair Labor Standards Act) and minimum wage/overtime laws of Kentucky and Pennsylvania. The case alleges that Great Virtual Works misclassified its “independent business owners” as independent contractors, rather than employees. Great Virtual Works is a corporation headquartered in Fort Lauderdale, Florida that provides telephone-based customer service, sales service and technical support to customers of client companies such as Great Healthworks, makers of the dietary supplement Omega XL. The collective claims brought under the FLSA here allegedly apply to similarly situated individuals in other states in a00ddition to Kentucky and Pennsylvania. The two plaintiffs claim that Great Virtual Works misclassified them in an attempt to avoid paying employees all the hours they spent actually working for the company.  According to the plaintiffs, Great VirtualWorks’ so-called “business owners” are actually individual employees working from their homes, performing hourly-paid work duties such as telephone-based customer service, sales service, and technical support for Great VirtualWorks’ client companies. The plaintiffs argue that they and other similarly situated individuals were not business owners or independent contractors as labeled by Great VirtualWorks because they did not make significant investments in equipment or materials, exercise any specific skills, or make a significant profit or loss from their work. The plaintiffs state that Great VirtualWorks has at all times of plaintiffs’ employment been in control of their work schedules and activities, relying on them and similarly situated employees to perform an integral part of its business of providing telephone-based customer service, sales service and technical support to other companies. Specifically, the plaintiffs allege Great VirtualWorks failed to pay them for work performed before, during, and after their shifts, including: connecting to the company from their own homes or places of work, opening computer applications for the company’s telephone-based customer service, sales service and technical support (5-20 minutes); having brief rest breaks (the FLSA says 5-minute to 20-minute breaks must be counted as hours worked); troubleshooting activities when disconnected from the company’s network; shutting down computers and applications at the end of a shift; reviewing emails and completing notes when not engaged in calls but clocked in; completing required online training; and attending mandatory meetings or coaching sessions. As a result of this unpaid work, the compensation plaintiffs actually received averaged less than the federal minimum wage, as well as the Kentucky and Pennsylvania minimum wage.  Additionally, plaintiffs allege that they did not receive proper overtime compensation at a rate of time-and-a-half of their regular rates of pay. The plaintiffs are now seeking unpaid minimum, overtime, and contractually-owed wages, liquidated damages, attorneys fees and costs, and other remedies they may be entitled to under federal or state law. The lawsuit is currently stayed pending an an upcoming ruling by the United States Supreme Court on a legal issue relevant to the employees’ claims, which is whether Great Virtual Works can require employees to submit their claims to individual arbitration. The amended collective class action complaint is recorded in Kentucky as Case No. 0:17-cv-00063-HRW. The plaintiffs are represented by the law firms of Barkan Meizlish Handelman Goodin DeRose Wentz, LLP and JTB Law Group, LLC. If you have questions or information to provide, you may contact the following attorneys: Trent Taylor; ttaylor@barkanmeizlish.com; (800) 274-5297 Robi Baishnab; rbaishnab@barkanmeizlish.com; (800) 274-5297 Nicholas Conlon; nicholasconlon@jtblawgroup.com; (877) 561-0000

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