by Stephen D. Hans | Dec 10, 2014 | Labor Law, Uncategorized, Wage and Hour
Business owners can get themselves into trouble when not understanding wage and hours laws. What appears to be a bright idea that cuts corners and saves money is sometimes a violation that leads to costly consequences. The Fair Labor Standards Act (FLSA) establishes minimum wages and standards for overtime pay, and federal enforcement falls under the United States Department of Labor’s Wage and Hour Division. Some common wage and hour pitfalls that a NY employment litigation lawyer can help you avoid include: Voluntary work hours. Even though employees work off the clock voluntarily past their scheduled work hours, they must receive overtime compensation for that work done. Documenting all employee work is necessary to protect your rights as an employer, and any work exceeding 40 hours, even though not at the employer’s request, must be paid. Travel time. When your employees travel as part of the job, calculating work time and overtime pay can be challenging. By consulting with an experienced employment litigation lawyer, you can receive legal advice about travel policies that comply with wage and hours law. Employee misclassification. Business owners must classify employees based on their job duties and hourly wages or salaries. Salaried employees generally do not receive overtime pay, whereas hourly employees do. The types of duties the employees perform are the basis for classifying an employee and in particular whether the duties include management. Classifying an hourly employee as a manager when the employee has no management responsibilities is misclassification, which can be subject to disputes and claims or lawsuits. Our attorneys can help you ensure your employees’ classifications fall within the letter...
by Stephen D. Hans | Jul 18, 2014 | Wage and Hour
After the Wage Theft Prevention Act went into effect, restaurant owners and other types of business owners became burdened with paperwork as they complied with annual requirements. They had to provide wage notices to all employees by February 1 of every year. This was a costly and cumbersome requirement. Recently the New York legislature passed a bill that eliminates the annual reporting requirement. The bill is sitting on Governor Cuomo’s desk awaiting his signature. Business owners must still provide wage notices when hiring a new employees and earnings statements to employees. In fact, the penalties for failing to do so are stiffened by the new bill. Here are some aspects of the new bill you should be aware of: Fines for failures to provide new hires with pay notices were $50 a week and up to a maximum fine of $2,500 and they increased to $50 per week and a $5,000 maximum fine. Fines for failures to provide earning statements were $100 a week with a $2,500 maximum and increased to $200 a day and up to a $5,000 maximum fine Owners can no longer dissolve an business entity and create a new one to avoid penalty fees because the fees pass on to the new business entity We understand that you do not have time to keep up with new laws that require compliance and can potentially affect your business. As employment law attorneys, we keep our clients informed and help them stay compliant with legal changes as they occur. Stephen Hans & Associates has assisted business owners with employment law compliance issues for decades, dating back to...
by Stephen D. Hans | May 31, 2014 | Employment Defense Attorney, Wage and Hour
Restaurant owners are subject to numerous regulations they must comply with and as various cases are litigated, rulings establish new precedents that can change how the industry does business. Maintaining a viable restaurant in today’s world often requires due diligence from a legal perspective. The best way to stay on top of a changing legal landscape is to work closely with an employment law attorney who can keep you apprised. Several recent cases are significant for the restaurant industry in how it manages tipped employees: Matthew Scott v. Souper Salad is a class action case brought against LNC Ventures LLC, the owner of the Souper Salad chain, which has restaurants in 45 locations. The plaintiff alleged the company violated the Fair Labor Standards Act (FLSA) by requiring tipped employees to spend more than 20 percent of their time doing non-tipped employees’ work. Tasks included cleaning, stocking supplies, sorting silverware and food preparation. Tipped employees work for lower rates than minimum wage employees and the lawsuit alleged these tasks prevented them from making fair wages. The plaintiff sought compensation for all hours worked that were less than minimum wage, interest, liquidated and punitive damages and attorneys’ fees. The case settled out of court under a confidential agreement. Flood et al. vs. Carlton Restaurants et al is a lawsuit brought by several employees against Carlson Restaurants Inc., which owns TGI Friday’s. The plaintiff is seeking certification as a class for TGI Friday’s workers nationwide. Some of the FLSA allegations claimed in the lawsuit are that restaurant managers require off-the-clock work before the restaurant opens and after it closes that is not...
by Stephen D. Hans | May 13, 2013 | Wage and Hour
Author: Hans & Associates, P.C. Off-the-clock claims are one source of wage and hour lawsuits. In an off-the-clock claim, employees assert that the employer forced them to spend time working off the time clock and they did not receive pay for it. Ways that off-the-clock work can occur are when employees work through lunch, breaks, stay late or come to work early. According to the Fair Labor Standards Act (FLSA), the rules that businesses must abide by are as follows: Employers must pay FSLA covered non-exempt employees at least the minimum wage For hours worked over 40 hours a week, employees receive one and one-half times their regular pay Hours worked mean all time employees spend on duty, on the work premises or at other designated work places along with additional time they are permitted to work Business practices that employers can put into place to protect against off-the-clock claims include: Enforcing strict rules that prohibit off-the-clock work Ensuring supervisors do not allow employees to work off-the-clock Have employees keep records of time worked and submit their time records Provide open lines for grievances regarding non-compensated work Take disciplinary actions for violations of off-the-clock rules Off-the-clock work can add up to significant amounts of money owed for unpaid work, and businesses are liable for paying. At Hans & Associates, our New York employment defense lawyers offer business clients affordable services to resolve wage and hour disputes, generally through negotiated settlements outside of...
by Stephen D. Hans | Apr 5, 2013 | Wage and Hour
Federal Court Denies Wage and Hour Claim against Restaurant Owner Author: Stephen D. Hans & Nils C. Shilitto The U.S. District Court for the Eastern District of New York has dismissed a wage and hour lawsuit brought by an alleged employee against Prima Pasta & Café, an Italian restaurant in Howard Beach. Attorney Nils C. Shillito, of the law offices of Stephen D. Han & Associates, represented Prima Pasta & Café in the litigation. The plaintiff in Lugardo V. Prima Pasta & Café, Inc. brought a claim against Prima Pasta for unpaid wages under the Fair Labor Standards Act and the New York Labor Law . The plaintiff claimed that he worked full time as a dishwasher, and later as a pizza preparer, for the restaurant. However, the restaurant strongly disputed these allegations, as the plaintiff had actually only worked for the restaurant on a select few occasions, serving private parties. Although Prima Pasta did not have any records of the plaintiff’s time worked and pay received, the owners contested his claims through their own testimony, and that of the restaurant’s manager, at the federal court trial. Despite the restaurant’s lack of records, the court, finding that the plaintiff’s testimony lacked credibility, dismissed all claims and closed the case. The Importance of the Decision In most litigation, the general rule is that the plaintiff possesses the burden of proof at trial. However, in the context of wage and hour disputes where the employer does not maintain detailed time and payroll records, the courts have long held that an employee need not provide his/her own records to substantiate past time...
by Stephen D. Hans | Aug 24, 2012 | Wage and Hour
Author: Hans & Associates, P.C. : Stephen D. Hans Restaurants fall into the hospitality industry category, which is subject to different wages and hours rules than other industries. The New York Department of Labor currently sets hourly minimum wages for food service tipped employees as follows: Minimum wage—$5.00 Maximum tip credit—$2.25 Total ((at least)—$7.25 These wages went into effect in January 2011. Other rules also apply such as paying overtime rates –one and a half times the regular pay rate – for hours worked over 40 hours/week. Under the New York Wage Theft Prevention Act (WTPA) New York restaurant employers must provide employees with a written notice of their pay rates, including overtime pay rates and also allowances taken as part of minimum wages, such as tips. Under New York’s spread of hours rules employees who work more than 10 hours in one day must receive an additional hour of pay at minimum wage rates. This has no relation to tips received and is regardless of whether the employee has a long break period in the middle of the day between lunch and dinner. How wages and hours work in the New York restaurant industry can be complicated. Other legal nuances exist that restaurant owners must be concerned about and consulting a New York employment defense lawyer can be helpful, especially in the planning stages. Hans & Associates, P.C. works with small and medium-sized restaurant owners in Queens and New York City. Mr. Hans has more than 30 years of business and employment law...
