EMPLOYMENT LITIGATION

CASE: ASSURANCE WIRELESS

Issues: Minimum Wage, Overtime Compensation, Wage Notices, Wage Statements

Summary:

Fitapelli & Schaffer, LLP, along with co-counsel, Nichols Kaster, PLLP, filed a class and collective action lawsuit on July 7, 2015 against Assurance Wireless, LLC ("Assurance Wireless") and Wallace Morgan, Inc. ("Wallace Morgan"). Assurance Wireless is a national wireless service provider headquartered in New Jersey and is owned by Virgin Mobile USA, L.P., which, in turn, is owned by the Sprint Corporation. Wallace Morgan is wireless phone provider that partners with Assurance Wireless to gather applications from consumers who wish to enroll in the Lifeline Assistance Program, a federal program that offers wireless phones and phone services to low income consumers. These wireless phones are commonly referred to as "Obama Phones".

The lawsuit claims that Assurance Wireless and Wallace Morgan willfully misclassify their workers as "independent contractors" and fail to pay the proper minimum wage for all hours worked, and fail to pay overtime compensation for hours worked over forty per work week as required by the Fair Labor Standards Act (the "FLSA") and the New York Labor Law (the "NYLL"), and seeks damages and statutory penalties for such violations.

Affected employees include any account executives, corporate trainers, or other similarly situated employees whose job was to gather applications for enrollment in the Lifeline Program through Assurance Wireless or Wallace Morgan within the last six years.

Plaintiffs Allege Assurance Wireless and Wallace Morgan misclassified workers as "independent contractors" and gave workers titles such as "account executives" and "corporate trainers", and were paid a flat rate of 10 dollars per consumer that enrolls in the Lifeline Assistance Program. It is argued that these positions are actually entry level, low skill jobs that did not require workers to have previous experience in sales, or any prior executive experience or training experience. Due to this, Plaintiffs allege they were actually employees of Assurance Wireless and Wallace Morgan and thus are entitled to minimum wage for all hours worked and overtime compensation for all hours worked over forty per work week as required by the FLSA and the NYLL. The lawsuit claims that the flat rate of 10 dollars per completed application does not equate to minimum wage, and workers received no overtime pay. In addition, the lawsuit seeks to recover all NYLL statutory damages for Defendants’ failure to provide annual wage notices and accurate wage statements.

Current and former account executives, corporate trainers, or other similarly situated employees should contact Fitapelli & Schaffer, LLP at (212) 300-0375 to see if you are eligible to join the case.

Contact Fitapelli & Schaffer, LLP

You can also view the complaint here.

RECORD SETTING AWARDS AND SETTLEMENTS

FOR OUR CLIENTS


$19,100,000

$19.1 Million for Tipped Restaurant Workers. (pending court approval)

Workers such as servers, bussers, runners bartenders, barbacks and other tipped workers at a large national casual dining chain alleged they were owed wages. Their claims included but were not limited to: unpaid overtime, spread-of hours, misappropriated tips, uniform-related expenses and unlawful deductions.

$15,900,000

$15.9 Million for Personal Bankers.

The firm was able to recover overtime compensation for personal bankers and others similarly situated at a national bank that operates hundreds of branches throughout the United States. Employees in affected positions claimed they were required to work more than 40 hours a week in order to meet sales quotas but were not compensated overtime for their pay.

$14,500,000

$14.5 Million for Spam Text Victims

Fitapelli & Schaffer was able to recover damages for recipients of unwanted promotional text messages from a popular young adult clothing retailer. The clothing company allegedly violated the Telephone Consumer Protection Act by sending text messages to recipients’ cellular phones without their prior express written consent.

$7,000,000

$7.0 Million for Bank Loan Officers

The firm was able to recover overtime compensation for loan officers at a national bank that operates more than hundreds of branches nationwide. Employees in affected positions claimed they were required to work more than 40 hours a week in order to meet sales goals but were not compensated overtime for their pay.

$5,900,000

$5.9 Million for Commissioned Car Salesmen.

One of the largest auto dealerships in the NYC Metropolitan Area agreed to pay owed wages to its car salesmen. The company was accused of failing to pay salesmen the proper minimum wage, overtime pay, commissions, and made unlawful deductions from their earned wages in violation of federal labor laws.

$4,300,000

$4.3 Million for Personal Bankers

Even though personal bankers at this nationwide bank were classified as exempt from receiving overtime pay, the company routinely required them to work in excess of 40 hours per week. There are federal laws that help protect workers from misclassification and in this situation; Fitapelli & Schaffer was able to recover unpaid overtime for personal bankers throughout the United States.

$4,300,000

$4.3 Million for Entertainers at Gentleman’s Clubs

F&S represented entertainers at a popular gentleman’s club in New York City that claimed the club failed to pay them the proper wages. The entertainers were able to recover owed wages that included unpaid minimum wages, overtime pay, spread-of-hours pay, unlawfully retained tips, unlawful deductions, and uniform-related expenses.

$3,600,000

$3.6 Million for Tipped Employees at Upscale Restaurant

Tipped workers alleged that a Mexican Michelin rated restaurant with 17 locations denied them overtime pay, minimum wages, and call-in pay. Our firm was able to recover wages for these tipped employees that included servers, bussers, bartenders, food runners and barbacks.

$3,400,000

$3.4 Million for Assistant Managers at Bank

Fitapelli & Schaffer successfully recovered unpaid overtime for assistant managers on a salary at a bank with locations nationwide. The salaried workers argued that they were wrongfully classified as exempt from receiving overtime when working over 40 hours per week.

$3,000,000

$3.0 Million for Bank Loan Officers

The fast food chain allegedly misclassified its assistant managers as salaried workers and considered them exempt from receiving overtime pay when working over 40 hours per week. Fitapelli & Schaffer was able to recover overtime compensation for all of the popular fast food chains’ assistant managers nationwide, with the exception of California.

$2,836,000

$2.9 Million for Tipped Restaurant Employees.

Fitapelli & Schaffer was able to recover unpaid minimum wages, overtime, spread-of hours, and unlawful deductions for tipped restaurant workers at a popular dining chain. Affected workers included servers, bussers, runners bartenders, barbacks and other tipped workers.

$2,250,000

$2.25 Million for Tipped Workers at Chain Sports Bar

proper minimum wage and overtime. Fitapelli & Schaffer helped the workers recover owed wages to the following positions: servers, bussers, bartenders, and other tipped workers under federal and state labor laws.

$2,000,000

$2.0 Million for Bank Loan Officers

Fitapelli & Schaffer was able to successfully recover unpaid overtime for loan officers at a nationwide bank that operates over one thousand locations across the United States. Loan officers for the company alleged that even though they were hourly employees and consistently worked over 40 hours per week they were working off the clock and not getting overtime pay.

$1,950,000

$1.95 Million for Health Care Workers

A New York based health insurance provider allegedly had its health care workers working over 40 hours per week but required they submit weekly timesheets that only showed they worked 37.5 hours. Fitapelli & Schaffer was able to successfully recover compensation for unpaid wages, overtime and spread of hours pay.

CONTACT

FITAPELLI & SCHAFFER LLP


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