Posts Tagged ‘failure to pay overtime wages’

DOL Sues Employer for Unpaid Pre- and Post-Shift Work

The Department of Labor (DOL) filed a lawsuit against Five Star Automatic Fire Protection in the Western District of Texas on July 7th, alleging the company failed to properly compensate its workers for labor they performed prior to and following their standard shifts. The DOL is seeking $321,000 in back pay and damages—a sharp reminder that the Fair Labor Standards Act (FLSA) requires employers to fully compensate their employees for all the work they do, including work done before and after they are on the job site.

The DOL’s attempted application of the rule is not new or even surprising, but it should grab employers’ attention, because it is a prime example of the type of wage and hour practices that put an employer on the wrong end of a costly lawsuit.

According to the DOL complaint, Five Star required its workers to begin their day at its office, where they loaded materials into a company vehicle before driving to the job site. After they were done at the jobsite for the day, Five Star required them to return the company vehicle to the office. The DOL has filed a complaint because it alleges Five Star did not compensate employees for this pre-shift and post-shift work.

FLSA requires employers to pay employees for all hours worked. Generally, any activity performed for an employer, whether it is done on the job site, at the office, or even off work premises, counts as time worked if the employer knows or has reason to believe work is being done. Activities such as preparing materials integral for work—the kind of pre-shift and post-shift work performed in this case—must be compensated as work. Even if Five Star did not intend to purposefully shortchange its workers, that fact alone will not shield it from liability. Remember: An employer must pay workers for all hours the employer knew or “should have known” the employee worked, and for hours that exceed 40 in a workweek, the employer must pay time-and –a-half. The unpaid pre-shift and post-shift hours, if properly counted, most likely cause the employees’ hours worked to exceed 40, and therefore the failure to pay for both the hours and overtime hours worked may be deemed a significant violation.

Employers can avoid placing themselves in Five Star’s position by ensuring that all hours are recorded accurately and that employees are not performing work outside of the time they are clocked in. Contractors can give their employees an option of riding to the jobsite in a company vehicle but employees cannot be allowed to perform any work before they arrive at the jobsite—or they will be in the same position as Fivestar is in this case.  If you have any questions about travel policies or any other FLSA issues, please contact us at Harmon & Davies, P.C.

This article is intended to provide general information, not a specific legal opinion or advice. Any particular questions should be directed to your legal counsel. If you do not have legal counsel, please feel free to contact Harmon & Davies, P.C.

Tags: , , , , , ,
Posted in FLSA, Labor & Employment, Litigation | No Comments »

Earlier this year, student guestworkers participating in the State Department’s J-1 Summer Work Travel Program filed complaints with the Department of Labor and State regarding working and housing conditions at three Harrisburg, Pennsylvania area McDonald’s franchises.  Visas under the J-1 Summer Work Travel Program are available to post-secondary students pursuing a full time post-secondary education outside of the United States who come to the United States to work and travel during summer vacation.

The complaint alleges that the franchise owner and its labor supplier, GeoVisions, engaged in various illegal practices that bring the students’ wages below minimum wage, including such practices as, deducting above-market rent from the students’ paychecks while providing substandard basement housing.  The franchisee owner and GeoVisons allegedly capitalized on the students’ desperation to work in order to pay back the debt incurred to cover the Summer Work Travel Program fees by placing the students on call at all times.  The complaint further alleges various violations of the Fair Labor Standards Act, including failure to record all hours worked by students, failure to pay the students for all hours worked, unlawful deductions resulting in payment below the minimum wage, unlawful pre-employment expenses resulting in payment below the minimum wage, and failure to pay overtime wages for hours worked over 40 in a week.

This article is authored by attorney Shannon O. Young and is intended for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice. Any particular questions should be directed to your legal counsel or, if you do not have one, please feel free to contact us.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,
Posted in Labor & Employment | No Comments »