Articles Posted in Chicago Employment Law

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Under the federal Fair Labor Standards Act (FLSA), all hourly, non-exempt employees are entitled to one and one-half times their normal hourly rate for all the overtime they spend working. It sounds simple enough, and for most workers it is, but employers need to make sure they’re including all the compensation earned by workers when calculating their overtime rate.

An overtime class action lawsuit against the U.S. division of Weatherford PLC alleges, among other things, that the oil company failed to properly calculate employees’ overtime rates. According to the wage and hour lawsuit, the company did not take into account certain bonuses (called “wellness bonuses”) that employees had earned when calculating the premium overtime compensation they should be paid when working more than eight hours a day or forty hours a week.

The class action lawsuit, which was filed in California in 2014, also alleges that Weatherford illegally denied workers compensation for the meal breaks they worked through.

Although the FLSA does not require employers to provide their workers with breaks throughout the workday, some state labor laws do, including California. Under California labor law, all hourly, nonexempt workers are entitled to one, paid, uninterrupted rest break of at least ten minutes for every four hours they spend working. For every five hours worked, employees are entitled to one, unpaid, uninterrupted meal break lasting at least half an hour. For every day an employee does not take one of these breaks, for any reason, that employee is entitled to one hour’s worth of pay, in addition to all other wages, bonuses, tips, etc. earned that day. Continue reading

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Although it seems like large companies are never short on cash, it’s usually more likely that, the larger the company, the more pressure it’s under to watch its bottom line. Too often, making that bottom line includes cheating employees out of their hard-earned wages. Unfortunately, it’s also true that, the larger the company, the more ways they have of avoiding the law.

According to a recent class action wage and hour lawsuit against Rotonda Golf Partners and Rotonda Golf Partners II LLC, the two companies, which are both under the same ownership, allegedly took advantage of their relationship to allegedly manipulate employees’ hours and wages. The lawsuit alleges the companies illegally exploited their relationship to avoid paying employees the proper overtime compensation of one and one-half times their normal hourly rate.

The federal Fair Labor Standards Act (FLSA) defines overtime as any time spent working after eight hours a day or forty hours a week. It also requires employers to pay all their hourly, non-exempt workers 50% more for their overtime hours than they pay them for all the straight time they spend working. But these regulations only apply to hours employees spend working for one employer. Workers who hold down multiple jobs are not owed overtime compensation until they have worked more than eight hours a day or forty hours in a week for one employer. Continue reading

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In the United States, federal laws are meant to apply to everyone living and working in the country. If a federal law conflicts with a state or local law, it may not always be immediately clear which one takes precedence. Some federal laws explicitly state that they can be preempted by state or local laws, but when the answer isn’t clearly written in the law, it can leave some people guessing.

An ordinance recently passed in Miami-Dad County in Florida raised the minimum wage for employees of contractors servicing Miami-Dade County or using airports owned by the county. The ordinance includes employees of third-party firms who provide janitors, security guards and clerical workers.

Amerijet International Inc. sued the county, alleging the ordinance violated the 1975 Airline Deregulation Act as well as the 1994 Federal Aviation Administration Authorization Act. Amerijet also argued that the Commerce Clause and Equal Protection Clause of the U.S. Constitution should prevent it from having to pay increased rates to baggage handlers who also handle baggage for other airlines at Miami International Airport.

The court ruled in favor of the county, so Amerijet appealed the decision up to the Eleventh Circuit Court, which upheld the lower court’s ruling. Amerijet then appealed to the Supreme Court, which refused to hear arguments for the case and upheld the ruling of the circuit court. Continue reading

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Companies are always looking for ways to cut costs and Darden, the corporate giant that owns popular restaurant chains like Olive Garden and Longhorn Steakhouse, has found a way to save itself approximately $5 million per year, according to a recent report conducted by Restaurant Opportunities Center (ROC) United, a worker organization. Unfortunately, the report alleges these savings for the company come from stiffing their workers, approximately half of whom are paid via debit card.

Debit cards have become a popular way to pay employees, especially those who earn minimum wage. It saves the employer millions and makes more millions for the company distributing the debit cards, all while milking more from the workers who earn so little to begin with that they often qualify for public assistance, even though they work full time.

Employers like Darden, who hire hundreds of thousands of low-earning employees, claim the debit card payment style is beneficial to both workers and employers because it saves workers from bank fees when they cash their paychecks. But the debit cards come with their own fees. According to the ROC United report, the debit cards used by Darden charged users $1.75 every time they withdrew money from an ATM that was out of their network, 99 cents when they used the card to pay utility bills, and 75 cents just to check the card’s balance. A worker who loses their debit card has to pay $10 to get a new one. Continue reading