FLSA Violation
$46.5 million question: Employee or independent contractor?
The grocery delivery company Instacart has agreed to pay $46.5 million to settle a lawsuit that accused it of wrongfully classifying employees as independent contractors. San Diego City Attorney Mara Elliott sued Instacart in September of 2019, just three days after a state-law bill regulating so-called gig economy employers cleared the California Legislature. That bill,…
Business ignores $354K FLSA settlement agreement: DOL sues
Another company has tried to dodge obligations outlined in a consent decree, according to a new lawsuit filed by the U.S. Department of Labor (DOL). The issue: an ignored FLSA settlement agreement. But that strategy – ignoring a court order – rarely works out, as several companies have learned the hard way in recent months….
Child labor violations? Court orders company to comply with DOL investigation
A New York federal court granted a temporary injunction that ordered a company to stop using “oppressive child labor” and to comply with a Department of Labor (DOL) investigation. According to the DOL, a restaurant violated the child labor provisions of the Fair Labor Standards Act (FLSA) by employing 14-year-olds to work after 9 p.m….
Company sued for FLSA violation after strange way it sent employee’s last paycheck
The DOL got involved when an employer not only failed to pay wages owed to an ex-employee, but did so in a very strange, vindictive way. The company also happened to make several other FLSA violations. Here’s what happened. Atlanta-based auto repair shop 811 Autoworks LLC — doing business as A OK Walker Autoworks —…
Costly FLSA ‘hot goods’ lesson: Company pays $1.1M for contractors’ illegal wage practices
Beyond Yoga recently paid more than $1.1 million to cover back wages and damages owed to its contractors’ employees who were allegedly shortchanged on overtime pay. You might be wondering: Why in the world would any company shoulder a seven-figure expense for its contractors’ mistakes? A little thing called the “hot goods” provisions, tucked into…
Costly mistake – court orders bakeries to pay nearly $1M in back wages, plus penalties
A Connecticut federal court has ordered three bakeries to pay nearly $1 million in back wages and damages to 74 employees to resolve violations of the Fair Labor Standards Act (FLSA). The suit was prompted by an investigation by the DOL’s Wage and Hour Division, which determined the three bakeries — Padaminas NY Bakery II,…
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