Local bag company learns an expensive lesson on wage and hour compliance

A federal judge has ordered American Made Bags to pay $189,756 to a group of 48 employees, half as unpaid wages and half as liquidated damages.

The allegations that came to light in two separate Department of Labor investigations that date back to 2014 include the misclassification of employees as independent contractors, the payment of the employees' regular rate instead of the statutorily required time and half rate for overtime hours, and the failure to keep records of amounts paid to employees. 

The wage and hour risks of rounding

"Iraene" asks the following question on the Antiwork subreddit.

I was told to round down or round up my time. So if I start work at 7:55 I need to put 8. If I work 37 minutes, I should round down to 30, instead of 45 because this is a common business practice. Is this normal? I have entered exact times on the card and into ADP so idk why it's a problem now.

While this practice as explained appears to be legal, it doesn't necessarily mean it's a good idea for the employer, at least according to this employment lawyer. 

Let me explain.

The time has come to limit the overuse and overbreadth of noncompetition agreements

It's been nearly five years since I asked this question: "Is your non-compete agreement killing a fly with a sledgehammer?" Now it seems that the federal government is asking the same question.

Yesterday, the Treasury Department published its report, "The State of Labor Market Competition" (as reported by The New York Times). The report sought to answer to investigate the effects of a lack of labor market competition on our country's labor market and answer whether that lack of competition hurts labor markets.

One of the key issues the report addresses is the impact of the overuse of noncompetitive agreements and other post-employment restrictive covenants. The report calls for laws or regulations to limit the use and impact of these agreements.

THIS is why craft breweries need to pay very close attention to labor unions

It was a simple question posed in the Craft Beef Professionals Facebook group: "Conversations on fair compensation are extremely important in our industry. What is a brewery that impresses you with the way they treat their team?" 

Out of the dozens of responses, this one should scare the hell out of any craft brewery owner: 

The IWW is looking into this and the other plethora of issues we face as workers in this industry. Reach out to brewing@iww.org if you're interested in creating a better work environment near you.

When I scream at the top of my lungs to craft breweries that they need to pay attention to union organizing, this is why.

WIRTW #616: the “cocktail” edition

Have you heard about Pravda Brewery, in Lviv, Ukraine. It has stopped producing craft beer and instead is making Molotov cocktails for the Ukrainian Territorial Defense Forces.

Yuri Zastavny, the brewery's owner, told Fox News that he and his workers decided to use their knowledge of chemistry, skills, supplies, and labor to contribute to the fight.

"Once we understand what can come through beer — because it’s no time for beer, we need to get other things sorted out — we decided to make Molotov cocktails because we can use bottles, we can use the people, and it was a grassroots idea." 

Zastavny added, "If you can brew, then you can make Molotov cocktails."

This is most definitely not what I had in mind when I decided to become a beer lawyer.

Here's what I read this past week that I think you should be reading, too.

Brewery CEO out after backlash to controversial vaccine comments

Vaccine mandates are a crime against humanity.

If you are not speaking out against them, you are a conspirator.

Those are the words Josh Stylman, the co-founder and now former CEO of Brooklyn, New York's Threes Brewing, recently shared on his personal Twitter account. He's also compared vaccine mandates to Jim Crow laws, the Nazi regime, and other historical atrocities. 

I’m not quite ready to declare the pandemic over, but I am ready to stop writing about it every single day

Nearly two years ago, I re-branded the Ohio Employer Law Blog as the Coronavirus Law Blog. It was a bit of marketing combined with the realization that Covid would be all that mattered to employers, at least in the short term.

That "short term" will turn two years old in nine days.

Today, however, I am officially re-re-branding the blog back to the Ohio Employer Law Blog.

If you want to get yourself into discrimination hot water, stereotype your protected-class employees

To cases recently settled by the EEOC illustrate the point that stereotypes of protected-class employees are a quick path an expensive lesson.

• Ranew's Management Company agreed to pay $250,000 to settle a disability discrimination claim after it fired an employee based on a "lack of trust" instead of permitting her to return from a leave of absence resulting from severe depression.

• American Freight Furniture and Mattress agreed to pay $5,000,000 to settle a sex discrimination lawsuit based on allegations that managers made hiring decisions based on bias and stereotypes, including that women would not "do as great a job at selling furniture as men," could not work in the warehouse because "women can’t lift," and that female employees would be " distraction" to their male coworkers. 

Coronavirus Update 2-28-22: CDC eliminates mask guidance for 70% of Americans

The CDC has issued new mask guidance based on the level of Covid-19 in a specific county. 

• In counties with a low level of Covid (green) — individuals are permitted to remove masks.

• In counties with a medium level of Covid (yellow) — individuals who are at high risk for severe illness are recommended to talk to their healthcare provider about whether they need to wear a mask and take other safety precautions.

• In counties with a high level of Covid (red) — individuals are recommended to wear a mask indoors in public.

WIRTW #615: the “prayers” edition

I pray for the people of Ukraine.

I pray for democracy.

I pray for diplomacy.

I pray for Europe.

I pray for troops everywhere, ours and everyone else's.

I pray that we are not seeing the beginning of WWIII.

I pray for peace.

I pray that I'm wrong about WWIII, but as a student of history I don't think I am.

Here's what I read this past week that I think you should be reading, too.

I hate “Tattleware”

I thought I had my next Worst Employer nominee. News broke yesterday of the mass exodus of employees from real estate company CoStar after allegations came to light of the company spying on work-from-home employees through the cameras on the company-issued laptops. I even had the post written. 

But in further researching the issue I came across this story that ran yesterday on the Today Show: 'Tattleware': How your boss might be tracking your remote activity. 

Its use skyrocketed as most companies switched to a work-from-home model during the Covid-19 pandemic.

Tip credits and tip pools — the tip of the FLSA iceberg

No employment law is more misunderstood and misapplied by employers than the Fair Labor Standards Act, our federal wage and hour law. There are more than 8,000 federal FLSA lawsuits filed per year, with nearly one-quarter filed against employers in the accommodation and food service industry … including craft breweries. 

These employers get themselves in legal trouble because of the special manner in which service industry employees are compensated. If you employ workers who customarily and regularly receive more than $30 a month in tips (and every craft brewery does), there are two key FLSA phrases you must understand to avoid FLSA landmines — tip credit and tip pool.

Vacation (all I ever wanted) — 7 tips to encourage your employees to use their paid time off

"AITA for turning my work phone off on vacation?" That's the question that someone recently posted on the eponymous subreddit.

The recently promoted employee disconnected during his vacation. During a moment of downtime, he powered up his work phone, only to find this voicemail from his new manager, demanding to know why he wasn't zooming in for meetings.

I checked my phone voicemail and the unknown number was him saying he "hoped there was a damn good excuse for why I was off the grid" if I wanted to keep my job. He even started out the voicemail with "I'm so sorry you’re in the hospital because that's the only reason I should be needing to hunt you down like this." In slack I had a few dms from coworkers I feel I get along with saying I need to reply ASAP because my absence was impacting them with how mad our boss was.

No, he's not the a***ole.

This dissenting opinion in the United Airlines vaccine-mandate case is 58 pages of pure judicial rage

It's been a little over three months since a federal district court in Forth Worth, Texas, denied a preliminary injunction to a group of unvaccinated employees of United Airlines challenging its vaccine mandate. The court so ruled because the employees, whom United had placed on an unpaid leave of absence, had a viable claim for money damages and with that adequate legal remedy couldn't simultaneously seek an equitable remedy. 

It's been a little over two months since a three-judge panel of the 5th Circuit Court of Appeals declined to issue an injunction pending the appeal of that district court decision. 

Late last week, however, a different three-judge panel of that same appellate court concluded that the employees had established irreparable harm to support their claim for injunctive relief and sent the case back to the district court to reconsider its prior ruling in light of that holding.

WIRTW #614: the “North Star” edition

I spent yesterday at my kids' school, Lake Ridge Academy. With the assistance of Grant Lichtman, an internationally recognized thought leader in the drive to transform K-12 education, I, along with the school's faculty, staff, and administration, some other parents, some students, and my fellow board members, spent the better part of the day brainstorming to determine the school's North Star — the one thing that will move the school forward with us all moving in the same direction, or, to put it differently, the one thing that will make us irresistible.

We learned a lot about us as a school and where we want to be. It was a rewarding, engaging, and energizing exercise from which any organization (or person) would benefit. 

What is your North Star? Or your business's North Star? Share in the comments below.

Here's what I read this past week that I think you should be reading, too.

An employer has disability discrimination problems if the interactive process isn’t interactive

You'd think an employer with the name Opportunities for Ohioans with Disabilities would know a thing or two about complying with workplace discrimination laws. 

You'd think.

A step in the right direction to ending workplace sexual harassment

When is the last time you recall Congress agreeing on anything? Well, it happened last week, when the Senate passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (full text here.)

Simply, once signed by President Biden (which should happen imminently), any agreement that requires an employee to submit a sexual harassment claim to private arbitration, or waive their right to participate in a class or collective action, would be invalid and unenforceable. 

What do you do for a living?

The question, "What do you do for a living," doesn't have a straight-line answer. My law firm bio offers several answers. 

There is a lot to unpack in that bio.

The 4th nominee for the “Worst Employer of 2022” is … the WTF racist

I can't do these truly awful allegations of systemic racism, racist harassment, and retaliation any more justice than the actual allegations from the lawsuit that the California Department of Fair Employment and Housing just filed against Tesla.

They are the worst allegations of workplace racism I've ever encountered. They start with claims of a segregated workplace with the Black section referred to as the "porch monkey station," the "slaveship," and the "plantation," and go downhill from there to include daily utterances of every kind of racist slur (including the n-word, "porch monkey," and "coon") 50 - 100 times per day.

WIRTW #613: the “competition” edition

On July 9, 2021, President Biden issued Executive Order 14036, Promoting Competition in the American Economy. Its goal is to reduce the trend of corporate consolidation, increase competition, and deliver concrete benefits to America's consumers, workers, and small businesses.

To that end, the Treasury Department has been investigating competition in the beer, wine, and spirits industries. Earlier this week, it published its report. 

It details how the government should be working to open up competition in these industries to help the small businesses that fuel it. 

It also makes some specific recommendations, including on the anticompetitive dangers of horizontal consolidation within the industry, and how state laws (such as beverage franchise laws) can be amended to eliminate or mitigate the anticompetitive effects of states' traditional three-tier supply chain system of passing alcoholic beverages from the producer/supplier, to the distributor/wholesaler, and ultimately to the retailer.

If you have any interest in these industries in particular, or more generally as to how the power of state and federal governments can be harnessed to help free enterprise by removing barriers to competition, I recommend reading the Treasury Department's report.

Here's what else I read this past week that I think you should be reading, too.