Wage theft is a shockingly common problem, costing employees billions of dollars every year across the United States. Sadly, lost wages are just the start of the problems for employees, who may find themselves struggling with legal and financial problems as a direct or indirect result of this type of malfeasance. But what exactly is wage theft, and how does it harm employees?
Category: Compensation
FLSA Salary Increase Struck Down in Federal Court
A federal court in the Eastern District of Texas has struck down a recent Department of Labor (DOL) rule change that would have increased the income limit of people eligible for overtime under the Fair Labor Standards Act (FLSA). Under the court’s ruling, the overtime rule itself is unconstitutional, not only invalidating this rule change, but also a previous income increase. The net result is that fewer people will now be eligible for overtime pay in their current positions.
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$12 Million Settlement in PNC Bank Labor Suit
PNC Bank has agreed to pay $12 million to settle a class action lawsuit by its mortgage loan officers arising from a series of alleged labor violations. Among these, the bank was accused of failing to account for loan officers’ breaks for their compensation, and that it improperly took deductions from their salary, causing them to make less than they were legally entitled to. While PNC argued that its compensation scheme was fair, it ultimately settled after losing on a partial motion for summary judgment.
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Security Screenings Are Not Work, Argues Amazon
In a case before the Second Circuit Court of Appeals, Amazon has argued that mandatory security screenings after employee shifts should not be considered work. This is an argument being made after an appeal of a Connecticut federal court ruling that went in Amazon’s favor. This critical issue could substantially affect how employees are compensated according to the National Labor Relations Act (NLRA) and other related legislation.
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What is Wage Theft, and How Do You Identify It?
Wage theft is one of the most pervasive issues affecting workers in the US today, with billions of dollars being effectively taken from employees by their employers every year. Though it often targets lower income workers, employees of any income level may become the victim of this type of labor abuse. But what exactly is wage theft, and how do you identify it if it is happening?
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Bay Shore Construction Company Sued for Underpaying Workers
A construction company based out of Bay Shore has been accused of violating New York labor laws due to misclassifying employees and underpaying them for their work. This allegation came from the Nassau County District Attorney’s office, who has brought a lawsuit against the company for its violations. The suit highlights how workers can be exploited when their employers are not honest or careful about how their employees are classified.
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Governor Signs Law Making Wage Theft a Crime
On September 6, Governor Kathy Hochul signed a law that will make wage theft a crime under New York State law. Employers who intentionally deprive their employees of their hard-earned wages may now face a felony charge of criminal larceny. This is meant to curb the disturbing trend of wage theft, which has only become a greater problem over time.
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Proposed DOL Rule Would Make 3 Million Eligible for Overtime
Under a new proposed rule by the United States Department of Labor, all employees making under $1,059 per week in the United States would be eligible for overtime pay. If adopted, this would potentially give an additional three million employees eligibility for overtime, when they would otherwise be excluded. This helps to close certain loopholes that employers have used to keep employees from earning overtime they might otherwise be entitled to. Continue reading “Proposed DOL Rule Would Make 3 Million Eligible for Overtime”
Ninth Circuit Rules Pre-Shift Duties Covered by FLSA
In a recent decision issued by the Ninth Circuit Court of Appeals, it was ruled that the Fair Labor Standards Act (FLSA) requires compensation for pre-shift duties, such as turning on a computer and logging into a system. This reverses a lower court decision that had ruled the opposite, exempting employers from compensating employees for this extra time. The result could be a substantial increase in the pay for certain wage-earners.
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Is Your Employer Stealing Your Overtime Pay?
According to the Fair Labor Standards Act (FLSA), every non-exempt employee in the United States must be paid at least one and a half times their normal wage if they work more than eight hours in a day, or forty hours in a week. And yet, employers regularly refuse to pay their employees the wages they have earned, effectively stealing money they are legally entitled to. So how do you know if your employer is stealing your overtime pay, and what should you do if they are?
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