Articles Posted in wage and hour lawsuit

Bay Area caregivers have filed a class-action against the Kentucky-based Kindred Healthcare and subsidiary companies for wage and hour law violations. According to reports, workers were denied overtime and breaks in violation of California labor laws. The defendant healthcare services company offers services providing care to the elderly, ill, and disabled throughout the Bay Area. The employee caregivers were contracted out by the healthcare company to work in assisted living and rehabilitation facilities.

Due to the nature of around the clock care necessary for many patients, workers had 12 to 24- hour shifts. According to the lawsuit, many of the workers were forced to complete these shifts without breaks. Our Orange County wage and hour law attorneys are dedicated to providing strategic and informed advocacy to protect the rights of our clients. We take a comprehensive approach to understand the facts of every case and will pursue every available opportunity to bring justice to California workers. In addition to providing counsel and advocacy in employment law disputes, our firm is committed to raising awareness to prevent future wage and hour law violations.

According to media coverage of the class action, employee caretakers were required to complete 12 to 24-hour shifts without getting paid overtime and without breaks for rest or to eat meals. In addition to working at residential facilities and assisted living centers, the caretakers were also sent to private residences. Under these working conditions, employees were paid only a flat-rate that amounted to less that minimum wage. The class representatives and lead plaintiffs in the lawsuit are experienced caregiver who were responsible for performing 12-hour shifts, seven days a week in private residences and facilities.

Many employers try to misclassify employees as independent contractors in an effort to reduce costs associated with workers’ compensation insurance and other workplace benefits.  This type of misclassification can have a profound negative impact on the rights of workers. Overtime pay may be unavailable, the misclassified worker will pay more in taxes and a host of other employment terms could be worse for a worker who is misclassified. 

In one recent case, the Ninth Circuit ruled that California home delivery drivers were misclassified as independent contractors.  A variety of factors were considered before the court decided that the independent “businesses” the employees were essentially forced to form were businesses in name only.

If you suspect you have been misclassified as an independent contractor, you should speak with an experienced California employment law attorney.

For members of the service industry, tips can be critical to fair compensation. Even if an employee is already paid minimum wage, he or she still has the right to collect tips and to take action against an employer that tries to take control or confiscate tip income. In a recent class action case, Whole Foods is being sued by employees who claim that the company stole their tips. According to the New York Observer, the Whole Foods management has been illegally holding onto worker tips violating state labor laws. The class action involves 40 other Whole Foods delivery employees who are asking for hundreds of dollars of missing tips.

In this case, the customer receipt did not give consumers the opportunity to add gratuity, so shoppers automatically assumed that the $5-10 delivery fee was being delivered directly to service employees. In fact, the company was pocketing this delivery fee. Many shoppers also disclosed that they believed that the delivery charge was a gratuity, not a fee for the store. Tipping law can be complicated so it is important to know your rights. Our California employment law attorneys are dedicated to raising awareness to protect the rights and interests of workers. Here are some facts you may not know about California tipping law:

Gratuity is the property of the employee. Under California law, employers are prohibited from collecting, taking, receiving or redistributing a tip left for an employee. Tips are the property of the employee and can be defined to include any tip, gratuity, or money left for an employee over and above the amount left for services.

Employment legal disputes can often invoke a class-action if there is more than one plaintiff injured by similar facts and circumstances. Employees who have suffered from discriminatory practices or policies will often take collective legal action against their employer. This is common in the event of wage and hour disputes. Last January, some jeered a cheerleader’s wage-and-hour dispute with the Raiders, but now other cheerleaders in the NFL have followed and filed similar lawsuits. At least one of these lawsuits is pending class approval.

Following the initial wage-and-hour claim, there have been several other lawsuits filed over unfair labor practices. Now NFL teams are being forced to look at compensation policies and cheerleader work schedules to determine if they are actually in compliance with federal labor laws. Our Orange County employment law attorneys are dedicated to protecting the rights of workers facing wage and hour disputes with their employer. We will take the time to review your case, assess your underlying claims and take strategic action to protect your legal rights.

Several other NFL teams are facing lawsuits over unfair labor practices, including the Tampa Bay Buccaneers, Bengals, Bills, and Jets. In each of these cases, the cheerleaders allege that they have not been paid minimum wages for performing and participating in the activities they are expected to during the course of employment. In addition, the cheerleaders have been expected to use their own money and to pay out of pocket for many of the expenses incurred while on away games or when performing other work duties.

Nationwide, cities, states, and even the federal government are considering and passing minimum wage hikes to protect low-wage workers and to meet contemporary financial needs. Though California’s minimum wage is slated to go up in July, other legislators are considering more aggressive hikes to support California workers. During an interview on CNN’s Crossfire, U.S. Representative Barbara Lee said that the minimum wage in California should be set at $26.00 an hour.

The minimum wage arguments have extended beyond cities, states and even the U.S. federal government. In Switzerland, a recent vote was held to raise the minimum wage to $25.00 an hour. The plan was rejected, however, the push towards minimum wage hikes demonstrates a general movement in favor of raising wages and the standard of living for the lowest paid workers in industrialized nations. Our Orange County wage and hour attorneys are dedicated to providing strategic counsel and advocacy to employees throughout our community and statewide. We are abreast of legal developments and are committed to keeping workers informed of their rights.

Minimum wage hikes have faced GOP resistance. Business lobbyists have argued that the minimum wage law is a setback that could result in more unemployment. Those in support of raising minimum wages see the shift as a way to help low-income workers meet base needs and have hope for a future. Activists admit that one or two extra dollars an hour would never send these workers into an upper-middle class income bracket, but it could be the necessary shift to simply make ends meet. Nationwide, cities, states and the federal government have recognized that old minimum pay rates do not equal the rate of inflation. This has left America’s lowest paid barely hovering above the poverty line. In many instances, these workers are left far below the line of poverty, making it difficult or impossible to ever get ahead.

Businesses, especially large corporations, have been gradually using more temporary workers to reduce wage liabilities and evade other regulatory and compliance measures. Another growing trend is the use of ‘perma-temp’ workers or long-term temporary workers managed by staffing agencies rather than direct employers. These workers are often found on farms, in factors, hotel rooms, restaurants and a wide range of other industries. Such temps significantly reduce wage costs and other liabilities for employers. Now California activists and legislators are looking for a legal solution to stop the use of ‘perma-temp’ workers and to establish protections against abuse.

The rise of the use of perma-temp workers has been an alarming shift, causing an uproar among workers, labor unions and other advocates. The use of staffing agency to manage temporary workers and handle wages lets big companies off the hook. Now a legal battle between labor and businesses is gearing up in Sacramento and could signal a legislative shift in California. Our Orange County employment attorneys are committed to protecting the rights of workers in California and can protect your rights in any wage and hour dispute. We are also committed to staying abreast of legal issues and trends that impact workers’ rights in our community and nationwide.

According to a report published by the National Employment Law Project, low-wage temping grew 41% between 2008 and 2012. There are approximately 3.4 million staffing agency jobs last year which makes up 2.25% of all employment. This shift from permanent employees to temporary staff workers creates as system of disposable workers without rights. Evidence has shown that the use of perma-temp workers allows contractors to exploit legal loopholes, flout safety regulations, skirt overtime and wage requirements, and avoid workers’ compensation and unemployment insurance benefits. Workers who challenge the system or seek to assert their rights can quickly lose their position and staffing agencies simply move on to the next hire.

CNN Money recently tackled the widespread myth that the market sets salaries. The reality is that this is simply untrue. People on the company’s compensation committees set salaries and sometimes these boards do not make smart or informed choices.  In fact, sometimes compensation committees make decisions that cause damage, including wage theft or employees making salaries that are below a living wage. 

While employers do not necessarily have to guarantee you a living wage, they do have to pay at least the minimum wage and they must comply with labor laws, including those prohibiting wage theft. If you are the victim of an employer that fails to pay you the amount required by law, an Orange County employment law attorney can provide you with assistance in pursing legal action.

Compensation Committees Often Fail to Consider the Big Picture 

In 2011, tech workers filed a class action lawsuit against Apple Inc., Google Inc., Adobe Systems Inc. and Intel Inc.  The workers claimed that the four tech giants conspired together and agreed that they would not solicit each other’s workers.  This agreement was designed to prevent a salary war that would inflate the wages of workers within the technology industry. 

Reuters reports that the tech companies have now agreed to pay a total of $324 million to settle the lawsuit. The case was being closely watched because of the potential for a significant damage award.  It also illustrates that employees in every field and every industry, even highly skilled workers, are at risk of potentially abusive and unfair behavior. Workers need to understand their rights and should consult with a Costa Mesa employment law attorney if they believe that they are being treated inappropriately or unfairly within the workplace.

Wage-Fixing Prohibited By Law

Assemblyman Mark Stone has introduced a bill, AB 2415, which would allow employees to record and enforce a lien on an employer’s property when allegations are made of unpaid wages.  The lien may be recorded prior to the employee proving his entitlement to back pay.  If the employee succeeds in demonstrating that he is owed wages by his employer, then the employee would also be allowed to recover attorney’s fees and costs for the legal action.  The Division of Labor Standards Enforcement (DLSE) and groups of employees would also be able to record and enforce a lien against an employer’s real or personal property. 

According to the LA Times, nearly 100 members of the Service Employees International Union (SEIU) marched on a Sacramento office of the California Chamber of Commerce in support of the bill in late April.   If passed, it could help employees to have a better chance of getting the money that their employers should have paid to them but failed to provide. Those who are victims of wage theft and whose employers fail to pay as promised should consult with a Los Angeles employment law attorney for assistance.

Unpaid Wages a Serious Problem in California