The one thing your business can do right now to cut your potential FLSA liability in half

Q: What is the one thing that your business can do RIGHT NOW to cut your potential FLSA liability in half?

A: Hire an employment lawyer to conduct a wage and hour audit.

Case in point: Hendricks v. Total Quality Logistics.

After 13(!) years of litigation, a federal judge recently ruled that TQL violated the Fair Labor Standards Act and must pay unpaid overtime to thousands of misclassified employees.

The judge also ruled that TQL must pay statutory liquidated damages under the FLSA in an amount to the unpaid overtime because TQL did not establish that it acted in good faith in (mis)classifying its employees.

How bad do wage and violations have to be for a federal judge to order you to sell your business? This bad.

A federal district court judge has ordered the owners and operators of 14 Subway restaurants to pay employees nearly $1 million in back wages and damages and further ordered them to sell or shut down their businesses within 60 days.

The wage and hour violations included:

Loula.

Thursday night, we made the very difficult decision to let our beloved family member, Loula Mae, go.

It was one of the hardest decisions we've ever had to make as a family.

She had too many not good things happening inside of her. After two days of testing the vet had no idea why her red blood cell levels kept dropping and not regenerating. There were also suspected cancer cell from a substantial mass that had suddenly formed under her armpit, which had quickly spread across her chest and down to her belly. The preliminary diagnosis was either cancer bleeding to her body causing the anemia, or the cancer triggering an autoimmune amenia.

Either way, all of the potentials were various degrees of awful. Thus, we made the painful decision to let her go instead of putting her through months of suffering with an uncertain outcome and only a small chance of her having any quality of life in the future.

WIRTW #689: the “134” edition

134. That's how many different available positions Costco offered to Monica Barnett over a nearly nine-month period in an effort to accommodate her knee and wrist injuries.

0. That's how many of the offered positions Monica Barnett applied for or requested placement.

1. That's the number of paragraphs it took the 9th Circuit Court of Appeals to affirm the dismissal of Barnett's failure to reasonably accommodate claim. In the Court's words:

Barnett claims Costco refused to engage in good faith, "forced" her to remain on medical leave, and required her to be "100% healed" before returning to work. These assertions are unsupported by the record. The undisputed record demonstrates that Costco held three job assessment meetings, sent Barnett 134 available positions over more than eight months, and placed Barnett in an optical-assistant position that accommodated her limitations.

Sometimes, no matter how hard you try as an employer to do right by an employee, the employee is going to sue. In those cases, all you hope is that you have your i's dotted and t's crossed, all of your contemporaneously made documentation is in order, and a judge or jury will see the case for what it is and find in your favor.

Employees shouldn’t have to choose between their religion and their job

Is there any legitimate reason a concierge must be clean shaven as a condition of employment? That question is at the center of a new lawsuit the EEOC filed against Blackwell Security Services.

The EEOC alleges that a Blackwell supervisor told a Muslim hiree that it was company policy that all employees be clean shaven. When the employee requested an exemption from the policy to accommodate his religious practice, Blackwell told him to shave his beard or be terminated. To avoid losing his job, the employee complied and shaved his beard. The EEOC charge and its lawsuit followed.

The two main reasons why employers shouldn’t retaliate

Social media giant TikTok is in some legal hot water for its alleged mistreatment of its employees. According to NPR, two Black employees allege that TikTok fired them after they complained to HR about racial discrimination within the company.

WIRTW #688: the “(not) Progressives” edition

Misgendering a transgender employee + forcing him to out himself to his coworkers + passing him over for a promotion + subjecting him to an unwanted office transfer + scrutinizing his medical appointments and other time off + ignoring his three HR complaints = a jury trial for Progressive Insurance on claims of sexual harassment, discrimination, and retaliation.

According to the plaintiff, the first four years of his employment at Progressive were without incident, until he informed his supervisor of his intent to transition from female to male. That's when he alleges the mistreatment began, and continued for the final four years of his employment until he quit.

Transgender people are under attack. This lawsuit is a symptom of a much larger problem in workplaces across our country. Trans employees often experience discrimination, harassment, and a lack of understanding, including from their work colleagues and bosses. As an employer, it is important to create a safe and inclusive environment for all employees, including those who identify as transgender or gender nonconforming. Otherwise, you just might find yourself at a receiving end of a well-deserved and difficult-to-defend lawsuit. Just ask Progressive Insurance.

The case is John Doe v. Progressive Ins., and you can find the court's summary judgment opinion here.

Facebook Messenger and other alternative communication channels for attendance call-outs

An employee uses Facebook Messenger to notify his supervisor of a medical absence, ignoring the company's policy that requires employees to use a specific call-in line to notify their supervisor of a tardy or absence at least 30 minutes before their shift begins.

Are these absences FMLA-protected excused absences, or unexcused absences subject to termination?

In 2019, Kasey Roberts took six weeks of leave to undergo and recover from an emergency appendectomy, after notifying his supervisor via Facebook Messenger. A few days after returning, Roberts was hospitalized for a post-surgical infection. He again sent his supervisor several Facebook messages notifying of his absences.

After Roberts missed three more weeks of work, his employer fired him for job abandonment, claiming that all of his absences were unexcused since the call-in line, and not Facebook Messenger, was its "usual and customary" system for medical leave notice.

Let’s play FLSA error-spotting

Empire Diner pays its servers a tipped minimum wage of $2.83, the permissible tipped minimum wage in the state in which it's located, Pennsylvania. According to the company's payroll records, each employee earns more than the statutory minimum wage, $7.25 per hour.

So far, so good under the Fair Labor Standards Act. So where did Empire Diner make its FLSA mistakes, according to the 3rd Circuit?

The 10th nominee for the “Worst Employer of 2023” is … the jack(a$$) in the box

The EEOC recently filed a lawsuit against a Jack in the Box restaurant owned and operated by Eastbox LLC, alleging sexual harassment against teen and young adult female employees. 

The allegations are horrific. 

WIRTW #687: the “red rain” edition

What was your worst day at work? 

If you work at Destilaria Levira, in Levira, Portugal, it was almost certainly this past weekend, when two wine storage vats exploded, flooding the town with 2.2m liters of "good quality" red wine. 

But a company is not defined by its disasters, it's defined by how it handles them after the fact. And this business handled his disaster very, very well.

"Dear Neighbors," its Facebook post began. 

We deeply regret the incident that occurred this morning involving the bursting of 2 suitable-to-consumption DOC wine storage units stemming from the extraordinary government support measure to producers and wineries of the Distillation Crisis 2023 motivated by the excess of wine in the country. 

Although the incident did not cause any injuries, we want to express our sincere concern for the damage caused in general in Levira and in particular to his home.  

 

The causes of the incident are being investigated by the competent authorities. 

We take full responsibility for the costs associated with damage cleanup and repair, with crews available to do it immediately. We're committed to resolving this situation as soon as possible.

Please keep photographic records of damages and damages and contact us to discuss the details and coordinate the necessary procedures. We are available at any time to help you resolve this issue.

Once again we apologize for the inconvenience caused and we're committed to doing whatever is necessary to remedy the situation.

Thank you very much and once again, we are very sorry.

Repeat after me: Never, ever, ever ignore court orders

Have you ever heard of a "writ of body attachment?" Me neither, until yesterday. That's when the 7th Circuit Court of Appeals issued one against Timothy and Carley Dillett, two corporate officials of Haven Salon + Spa, and ordered federal marshals to take them into custody.

What did the Dilletts do to earn the ire of a federal appeals court and wind up in custody?

They repeatedly and willfully ignored the NLRB's and the Court's orders.

If you bet on which of your employees will get Covid, you probably shouldn’t qualify for a bonus

In late 2020, Tyson Foods fired seven of its pork processing plant managers after they were caught betting on which of their employees would next get sick with Covid. At that time, more than 1,000 Tyson employees had fallen ill, and six had died. In announcing the firings, the company's President and CEO said, "The behaviors exhibited by these individuals do not represent the Tyson core values, which is why we took immediate and appropriate action to get to the truth. Now that the investigation has concluded, we are taking action based on the findings."

Not content with leaving well enough alone, five of the seven fired managers sued Tyson Foods claiming that the company owed them a bonus payment pursuant to the company's Annual Incentive Plan. 

The 9th nominee for the “Worst Employer of 2023” is … the cake boss

Telling an employee to "Eat a Dick" won't earn you a nomination for the Worst Employer of 2023. 

Writing "Eat a Dick" on the inside lid of a box holding a penis-shaped cake you have delivered to an employee won't even earn you a nomination for the Worst Employer of 2023. 

But doing so when you're the company's HR manager? That will earn you a well-deserved nomination to this year's list.

WIRTW #686: the “non-union label” edition

(With a huge tip of the hat to my friend Mike VanDervort for the idea), and inspired by the impending union election at Creature Comforts, I asked Bard, Google's AI assistant, the following question: "What are some good names for a union-free craft beer?"

Bard's suggestions:

• Free Range Ale
• Independent IPA
• Maverick Pale Ale
• Unshackled Wheat 
• Renegade Stout
• Free Spirit Saison
• Unbowed Brown Ale
• Unbound Amber Ale
• Defiant Pilsner
• Untamed IPA
• Wild Card Porter

But it is its rationale for choosing those names that is the most enlightening. 

These names all convey the idea of being free from union control, while also being creative and catchy. They would be a good fit for a craft beer that is brewed by a small, independent brewery that values its employees and gives them a fair wage.

There's a whole lot of wisdom in the statement that valuing your employees and paying them a fair wage is what a business needs to do to stay union free. So, crack open an Unshackled Wheat or an Independent IPA and toast those businesses that treat their employees like people, and not like replaceable widgets whose only goal is to make the company profits; they will be the employers that will remain union free, even as the NLRB is doing everything within (and without) its power to unionize as many businesses as possible.

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Can you hear me now?! Jury awards deaf truck driver $36M in disability discrimination lawsuit

$36 million is a number large enough to get anyone's attention. It certainly got the attention of Drivers Management, LLC and Werner Enterprises, Inc., after a federal jury awarded the EEOC that amount in a disability discrimination lawsuit it filed on behalf of Victor Robinson, a deaf truck driver, denied employment because of his disability.

OSHA wants to let union reps into your non-union facility

If OSHA gets its way, you might have to start opening the doors of your business to union reps during the agency's safety inspections.

Pursuant to a new rule proposed by OSHA, in the event of an OSHA inspection an employee can designate another employee or a non-employee third-party to accompany the OSHA agent during the physical workplace inspection.

WIRTW #685: the “good bosses” edition

I write about a lot of horrible, terrible bosses … the worst employers. 

Today, however, I want to use this space to shine a light on five really, really great bosses … specifically late-night hosts Stephen Colbert, Jimmy Fallon, Jimmy Kimmel, Seth Meyers, and John Oliver. This week, they launched a new podcast — Strike Force Five — to raise money for their employees that have been out of work since the WGA went on strike 122 days ago. 

The hosts are donating all proceeds they receive from the podcast to the out-of-work staff from their respective shows.

Do them a favor and show your support and appreciation by finding Strike Force Five in your podcast app of choice and subscribing. 

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DOL announced proposed rule to increase salary threshold for white-collar exempt employees

$1,059 per week. If the Department of Labor gets its wish, that amount will become the new salary threshold for its various white-collar overtime exemptions. Yesterday, the DOL published a notice of proposed rulemaking seeking to increase the FLSA's salary test from the current threshold of $684 per week ($35,568 annually) to $1,059 per week ($55,068 annually).

You will read a lot over the next couple of months that the DOL increasing its white-collar salary threshold by nearly 55% is a huge deal. I'm here to tell you that it really isn't.

NLRB opens the tap for a union election at Creature Comforts Brewing Company … but will it matter?

It took more than seven months, but the NLRB has finally directed a union representation election at Creature Comforts Brewing Company. The NLRB will soon hold a secret ballot election over whether employees wish to be represented for purposes of collective bargaining by the Brewing Union of Georgia. 

The bigger issue for Creature Comforts, however, is that even if it wins the election, the union will almost certainly use its four pending unfair labor practice charges against the employer to seek a bargaining order under the Board's recent Cemex decision (which the Board will apply retroactively).