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CLASS ACTION ARBITRATION

A Federal Court in New York recently agreed with an Arbitrator’s award permitting the employees to seek their New York Labor Law (“NYLL”) and Fair Labor Standard Act (“FLSA”) claims on a class-wide or collective action basis, despite the arbitration agreement not expressly giving the employees this option.  The employees worked as tipped, hourly food service workers at their employers’ restaurants.  During their employment, the employees received a handbook with a dispute resolution policy (“DRP”) and they also received a ...

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NEW YORK HOME HEALTH CARE OVERTIME

In the first class-wide settlement of its kind, employees of a home care agency reached an agreement with their employer to settle their overtime compensation claims.  The New York State Court approved a settlement that awarded the employees $1.1 million.  The employees worked as home health aides for McMillan’s Home Care Agency.  The employees alleged that their employer failed to pay them overtime at one and one half times their regularly hourly rate, despite frequently working up to 60 hours ...

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RECRUITERS ARE ENTITLED TO OVERTIME PAY

In a recent case, the employees of a class action lawsuit were awarded $12.3 million to settle their overtime claims.  The employees worked as health care and staffing recruiters for Maxim Healthcare Services Inc., a national health care staffing company.  The employees alleged that they worked in excess of 40 hours per workweek and were not paid any overtime wages as required under various State Labor Laws and the Federal Labor Standards Act (“FLSA”).  The employees’ job duties consisted of ...

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ENERGY COMPANY OVERTIME SETTLEMENT

Last week, Allis-Chalmers Energy agreed to pay $1.9 million to their employees to resolve an unpaid overtime class action lawsuit.  Back on November 30, 2010, employees of Allis-Chalmers Energy, an oil and gas servicing company, filed a lawsuit alleging that their employer failed to pay them overtime.  The employees were employed as field operators who were primarily engaged in manual labor duties such as transporting, installing and maintaining oil and gas drilling equipment such as fluid lines and air compressors.  ...

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OBAMA CARE UPHELD BY SUPREME COURT

In an innovative ruling that is likely to send shockwaves throughout America, the Supreme Court of the United States decided that the so-called “individual mandate” is constitutional under Congress’s power to tax.  The Supreme Court said that the individual mandate provision does not require all Americans to carry health insurance.  Instead, the provision is an invitation for everyone to carry health insurance, but if people choose not to carry health insurance then they will have to pay a tax.  By ...

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ORAL AGREEMENTS FOR BONUSES ARE ENFORCEABLE

In a recent case, New York’s highest court decided that an oral bonus agreement is enforceable.  The court awarded the employee the amount of the bonus, interest and attorneys’ fees.  While working in the financial industry for a brokerage firm, the employee received a job offer from another employer, which was a broker-dealer.  As part of the compensation package offered, the employee was to be paid a bonus.  The agreement was not in writing, but was offered and accepted verbally.  ...

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SUPREME COURT DECISION REGARDING SALES REPS

The Supreme Court of the United States recently decided in Christopher v. Smithkline Beecham Corp. that pharmaceutical sales representatives are not entitled to overtime wages under the Fair Labor Standards Act (“FLSA”) because they satisfy the ‘outside salesmen’ exemption.  The Court based their decision on the nature of the pharmaceutical sales reps’ position and the rules and industry wide practices set forth in the pharmaceutical sales industry.  A pharmaceutical sales rep’s objective is to enter into as many nonbinding commitment ...

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FIDDLESTICKS/GALWAY HOOKER LAWSUIT

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F&S filed a class and collective action in the United States District Court Southern District of New York against Fiddlesticks and Galway Hooker, very well-known bars in New York City.  We allege workers were not paid properly and violations include minimum wage, overtime and spread of hours pay.  Current and former employees should contact the firm to join the case as soon as possible.  We are seeking liquidated damages, which can double the amount ...

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GUSTO RESTAURANT LAWSUIT

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On April 24, 2012, Fitapelli & Schaffer filed a class and collective action lawsuit against Gusto Restaurant in New York City.  The lawsuit alleges Gusto failed to pay their employees minimum wage, overtime, gratuities and spread of hours to servers, bussers, runners, bartenders, barbacks, dishwashers, salad and pasta preparers.  Since we filed the lawsuit, additional workers have joined the case.  We will seek to represent all eligible workers who have been employed by Gusto ...

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BOSTON MARKET SETTLEMENT

Boston Market has agreed to settle an overtime claim for $3 million.  The claim was brought on behalf of assistant managers who alleged they were wrongfully misclassified as exempt from the overtime laws.  The settlement covers a nation-wide collective action pursuant to the Fair Labor Standards Act and class actions pursuant to New York and Connecticut law.  Many cases involving assistant managers are fact specific, and turn on whether the employees performed menial tasks for a majority of their workday, ...

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