Latest News about FLSA cases

Wage and hour FLSA cases are constantly in the news. A wide range of companies may be involved in wage and hour disputes, from small businesses to mega retailers. All industries may be affected, particularly hospitality and service companies that employ staff members that work overtime, wear company uniforms, or rely on tips.

In 2004, controversial changes to the Fair Labor Standards Act went into effect that made significant changes to what qualifies employees as being exempt from FLSA standards. Many technical employees have expressed concern over these changes because some have become ineligible for overtime compensation.

  • In January of 2005, Cingular Wireless agreed to pay $5.1 million in back wages to over 25,000 customer service workers for violations of overtime FLSA provisions. More recently, the world's biggest retailer Wal-Mart has come under the scrutiny by the Department of Labor. The issue at hand is in regards to an agreement between Wal-Mart and the Department of Labor to give the retailer 15 days' notice before an investigation into their labor practices.
  • In June 2006, Sterling Jewelers Inc., of Akron, Ohio agreed to reimburse $1.29 million in unpaid wages to 16,820 current and former employees due to failure to calculate incentive pay into overtime wages.  This led to less than time-and-a-half pay for working over 40 hours in a week during the period between November 2, 2003 and February 25, 2006.
  • In August 2006, Prince Faisal of Saudi Arabia settled a claim that contended he violated FLSA provisions in regards to the security staff he employed at his Virginia residence.  Five of the security agents asserted unpaid overtime resulted in lost wages, even though the prince claimed they were independent contractors and therefore exempt from overtime laws.  The 4th Circuit Court of Appeals ruled in favor of the guards and allowed them compensation under the law.
  • Also in June 2006, the U.S. Department of Labor announced that Atlanta Erosion Consultants would pay 193 employees $574,486 in unpaid overtime.  A Wage and Hour Division investigation discovered these employees’ overtime pay was disguised as bonuses on the company payroll records, and that these workers lost wages because they were forced to work off the clock.


If any of these stories sound familiar to your situation, you may be a victim of a similar FLSA violation.  If you believe you have lost wages because of unpaid overtime, unpaid meal breaks, or working off the clock, you may be a victim of and abuse of overtime pay laws.  If you were not compensated for overtime worked, you need to consult our dedicated and experienced unpaid overtime lawyers immediately.   We can help you get the justice you deserve.  Contact us today.

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Latest News about FLSA cases and Wage and Hour Disputes page updated on 9/28/06