Topics relating to Labor Law | St. Petersburg, FL https://www.stpetelawgroup.com/tag/labor-law/ St Petersburg's Oldest Full Service Law Firm Wed, 21 Apr 2021 19:20:32 +0000 en-US hourly 1 https://www.stpetelawgroup.com/wp-content/uploads/favicon-150x150.png Topics relating to Labor Law | St. Petersburg, FL https://www.stpetelawgroup.com/tag/labor-law/ 32 32 General Provisions Under the Fair Labor Standards Act https://www.stpetelawgroup.com/general-provisions-under-the-fair-labor-standards-act/ Fri, 04 Sep 2020 01:29:10 +0000 http://54.160.171.51/?p=2827 The Fair Labor Standards Act, also known as the FLSA, is a federal statute which sets forth certain standards to employees in the private and governmental sector.

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The Fair Labor Standards Act, also known as the FLSA, is a federal statute which sets forth certain standards to employees in the private and governmental sector. The Fair Labor Standards Act enforces and administers the Wage and Hour Division of the U.S. Department of Labor.

Employers

Not all employers are deemed to be “covered enterprise / employers” pursuant to the Fair Labor Standards Act.

Factors as to whether an employee is considered a covered enterprise include if the covered enterprise (1) has an annual gross volume of sales made or business done is not less than $500,000, (2) is engaged in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill who reside on the premises; a school for mentally or physically disabled or gifted children; a preschool, an elementary or secondary school, or an institution of higher education (whether operated for profit or not for profit); or (3) is an activity of a public agency.

Further, employees working for entities which are not deemed covered enterprises under the Fair Labor Standards Act may still be subjected to the FLSA provisions if they are engaged in interstate commerce, in the production of goods for interstate commerce, or closely related to any process or occupation which is essential to the production of goods for interstate commerce. Indeed, an employee is covered under the Fair Labor Standards Act in certain instances if the workers are engaged in interstate commerce, are producing goods for interstate commerce, or otherwise participating in the handling, selling, or working on goods or materials which have been moved in or produced for interstate commerce.

Common Categories of the Fair Labor Standards Act

The commonly-known main categories of the Fair Labor Standards Act are the following.

1.) Hours Worked

Pursuant to the Fair Labor Standards Act “hours worked” generally includes all of the time which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.

2.) Minimum Wage

The federal minimum wage is $7.25. Employees covered by the Fair Labor Standards Act are entitled to the aforementioned minimum wage.

It is important to note that an employer cannot make deductions from wages to the extent that the deductions reduce the employee’s wages below the minimum rate required by the Fair Labor Standards Act. (Examples of such deductions include uniforms or tools).

The Fair Labor Standards Act also sets forth certain requirements for tipped employees. Tipped employees are defined as employees who are engaged in occupations wherein the employee customarily and regularly receives more than thirty dollars ($30) in tips. The employer can consider tips as part of the wages. However, an employer must pay the tipped employee at least $2.13 an hour in wages. Furthermore, for an employee to use the tip credit provisions under the FLSA, the employer must place the employee on advance notice of certain criteria and be able to establish certain requirements

3.) Overtime

Employees covered by the Fair Labor Standards Act are entitled to overtime. Overtime pay is pay at a rate not less than one and one-half times the regular rate of the employee’s pay. Overtime pay is required to be paid by the employer after the employee works after forty (40) hours of work in one work week.

Certain employees are exempt from the hourly wage requirements of the Fair Labor Standards Act. It is thus important to know if you are an employee who is covered by the mandatory overtime provisions of the Fair Labor Standards Act.

It is important to note that an employer cannot make deductions from wages to the extent that the deductions reduce the employee’s wages below the overtime due pursuant to the Fair Labor Standards Act.

4.) Recordkeeping

Employers must maintain appropriate recordkeeping. This means that employers must keep employee time and pay records. These records are to include wages, hours, and other requirements as specified by the Department of Labor regulations. With respect to an employee who is subject to the minimum wage provisions – or the minimum wage and overtime pay provisions – it is imperative to note that the following records must be kept: (1) the employee’s personal information, including the employee’s name, home address, occupation, sex, and birth date if the employee is under 18 years of age or younger; (2) the hour and day when workweek begins; (3) the total hours worked each workday and each workweek; (4) the total daily or weekly straight-time earnings; (5) the regular hourly pay rate for any week when overtime is worked; (6) the total overtime pay for the workweek; (7) any deductions from or additions to wages; (8) the total wages paid each pay period; and (9) the date of payment and pay period covered.

Further, employees must display an official poster which outlines the requirements of the Fair Labor Standards Act.

5.) Child Labor

The Fair Labor Standards Act also contains specific to child labor. This section provides certain requirements for employees under the age of eighteen (18).

The Fair Labor Standards Act child labor provisions include restrictions on the hours of work that a minor under the age of sixteen (16) can work. The Fair Labor Standards Act also lists certain hazardous occupations which are prohibited for minors to perform. This list of prohibited occupations declared to be too dangerous include both farm and non farm jobs.

Exempt Employees

It is important to know that certain employees are exempt from the minimum wage provisions of the Fair Labor Standards Act and/or the minimum wage and overtime requirements of the Fair Labor Standards Act.

Employment Law Attorneys at Battaglia, Ross, Dicus & McQuaid, P.A.

If you feel that your employer has violated the Fair Labor Standards Act – or if you are an employer and an employee is alleging a violation of the Fair Labor Standards Act – contact the employment law attorneys at Battaglia, Ross, Dicus & McQuaid, P.A. today. Our experienced employment lawyers can speak with you regarding your situation.

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Class Action Lawsuits https://www.stpetelawgroup.com/class-action-lawsuits/ Thu, 16 Jul 2020 13:54:52 +0000 http://54.160.171.51/?p=2771 A class action is generally defined as a lawsuit filed or defended by an individual or small group acting on behalf of a large group.

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class action is generally defined as a lawsuit filed or defended by an individual or small group acting on behalf of a large group. There are certain rules that apply to class actions filed in state court in Florida. Florida Rule of Civil Procedure Rule 1.220 governs class actions.

Prerequisites to Class Representation

Rule 1.220 provides that there are certain prerequisites to bringing and maintaining a class action. Before any claim or defense may be maintained on behalf of a class by one party or more suing or being sued as the representative of all the members of a class, the court shall first conclude that (1) the members of the class are so numerous that separate joinder of each member is impracticable, (2) the claim or defense of the representative party raises questions of law or fact common to the questions of law or fact raised by the claim or defense of each member of the class, (3) the claim or defense of the representative party is typical of the claim or defense of each member of the class, and (4) the representative party can fairly and adequately protect and represent the interests of each member of the class. These principles are generally known as numerosity, commonality, typicality, and adequacy.

Claims and Defenses Maintainable

In terms of what claims and/or defenses can be maintainable by a class action, Rule 1.220 provides that a claim or defense may be maintained on behalf of a class if the court concludes that numerosity, commonality, typicality, and adequacy are satisfied, and that:
  1. the prosecution of separate claims or defenses by or against individual members of the class would create a risk of either: (a) inconsistent or varying adjudications concerning individual members of the class which would establish incompatible standards of conduct for the party opposing the class; or (b) adjudications concerning individual members of the class which would, as a practical matter, be dispositive of the interests of other members of the class who are not parties to the adjudications, or substantially impair or impede the ability of other members of the class who are not parties to the adjudications to protect their interests; or
  2. the party opposing the class has acted or refused to act on grounds generally applicable to all the members of the class, thereby making final injunctive relief or declaratory relief concerning the class as a whole appropriate; or
  3. the claim or defense is not maintainable under either of the two prongs referenced above, but the questions of law or fact common to the claim or defense of the representative party and the claim or defense of each member of the class predominate over any question of law or fact affecting only individual members of the class, and class representation is superior to other available methods for the fair and efficient adjudication of the controversy. The conclusions shall be derived from consideration of all relevant facts and circumstances, including (a) the respective interests of each member of the class in individually controlling the prosecution of separate claims or defenses, (b) the nature and extent of any pending litigation to which any member of the class is a party and in which any question of law or fact controverted in the subject action is to be adjudicated, (c) the desirability or undesirability of concentrating the litigation in the forum where the subject action is instituted, and (d) the difficulties likely to be encountered in the management of the claim or defense on behalf of a class.

Pleading Requirements

There are also pleading requirements to keep in mind when pleading a class action.

Determination of Class Representation; Notice; Judgment; Claim or Defense Maintained Partly on Behalf of a Class

Florida Rule of Civil Procedure 1.220 provides that as soon as practicable after service of any pleading alleging the existence of a class under this rule and before service of an order for pretrial conference or a notice for trial, after a hearing, the court shall enter an order determining whether the claim or defense is maintainable on behalf of a class on the application of any party or on the court’s initiative. Irrespective of whether the court determines that the claim or defense is maintainable on behalf of a class, the order shall separately state the findings of fact and conclusions of law upon which the determination is based. In making the determination the court (a) may allow the claim or defense to be so maintained, and, if so, shall state under which pertinent subsection the claim or defense is to be maintained, (b) may disallow the class representation and strike the class representation allegations, or (c) may order postponement of the determination pending the completion of discovery concerning whether the claim or defense is maintainable on behalf of a class. If the court rules that the claim or defense shall be maintained on behalf of a class, the order shall also generally provide for the notice required. As soon as is practicable after the court determines that a claim or defense is maintainable on behalf of a class, notice of the pendency of the claim or defense shall be given by the party asserting the existence of the class to all the members of the class. The notice shall be given to each member of the class who can be identified and located through reasonable effort and shall be given to the other members of the class in the manner determined by the court to be most practicable under the circumstances. Unless otherwise ordered by the court, the party asserting the existence of the class shall initially pay for the cost of giving notice. The notice shall inform each member of the class that (a) any member of the class who files a statement with the court by the date specified in the notice asking to be excluded shall be excluded from the class, (b) the judgment, whether favorable or not, will include all members who do not request exclusion, and (c) any member who does not request exclusion may make a separate appearance within the time specified in the notice.

Contact the Attorneys at Battaglia, Ross, Dicus & McQuaid, P.A.

This article does not address all the requirements set forth in Florida Rule of Civil Procedure 1.220 or Florida case law concerning class actions. The employment attorneys at Battaglia, Ross, Dicus & McQuaid, P.A. are experienced in the defense of class action litigation. If you are defending a class litigation, contact the civil litigation and commercial litigation attorneys at Battaglia, Ross, Dicus & McQuaid, P.A. today.

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Employment Discrimination https://www.stpetelawgroup.com/employment-discrimination/ Wed, 13 May 2020 15:28:45 +0000 http://54.160.171.51/?p=2657 This article covers people that have been the targets of employment discrimination or employers that have received a charge of discrimination.

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Federal Level: The Equal Employment Opportunity Commission The U.S. Equal Employment Opportunity Commission (“EEOC”) is responsible for enforcing laws which make it illegal to discriminate against an employee. Types of discrimination can include age discrimination, disability discrimination, racial discrimination, gender discrimination or sex discrimination (which includes pregnancy discrimination), national origin discrimination, genetic discrimination, and religious discrimination. It is also illegal to engage in harassment. Harassment occurs when an employee is harassed because of his or her race, sex, age, disability, race, gender, sex, genetics, national origin, or religion. It is also illegal for an employer to take retaliatory action – otherwise known as retaliation – against a person for complaining of discrimination These laws apply to hiring, firing, promotions, and other aspects of the employment relationship. The EEOC has the authority to investigate charges of discrimination (including harassment and retaliation) against certain employers. Namely, most employers who have at least fifteen employees are covered within the EEOC’s jurisdiction. If an employee or job applicant maintains that he or she has been subjected to discrimination, the employee or job applicant can file what is known as a charge of discrimination against the employer. The charge of discrimination must include a description of the action the employer took which the employee/applicant felt was discriminatory in nature and the type of discrimination. Once a charge of discrimination is filed, the EEOC will investigate the claim. The EEOC will investigate the matter to determine whether there is reasonable cause to believe that discrimination occurred. When a charge is filed against an employer for discrimination, the EEOC will notify the entity being charged (the employer) within ten days of the charge being filed. This notification to the employer will include information about how the employer can access the EEOC’s online portal, respond to the charge, and more. During the investigation, the employee/job applicant (known as the charging party) and the employer (known as the respondent) will have the opportunity to provide information related to the charge. The EEOC will request the respondent employer to submit a statement of position, which is essentially the employer’s response to the discrimination allegations. The EEOC may request the employer respond to what is referred to as a Request for Information, which asks the employer to provide certain documents. The EEOC may further conduct an on-site visit. The EEOC may also conduct interviews. Once the investigation stage is complete, the EEOC will make its determination as to whether there is reasonable cause to believe that discrimination occurred. If the EEOC determines that there is reasonable cause to believe discrimination occurred, it will issue a letter of determination which formally states that there is reasonable to believe discrimination occurred. The EEOC will invite both parties to seek to resolve the charge through a conciliation process, which is similar to mediation. As stated, if the EEOC determines that discrimination occurred, the EEOC will try to settle the charges through conciliation. Likewise, it is important to know that either party can request that the parties engage in mediation during the investigation/charging process. While the parties are not required to participate in mediation, it is certainly encouraged. If the parties settle the matter, they will request a dismissal of the charge. If conciliation is unsuccessful (meaning the charges cannot be settled between the parties), and the EEOC has determined reasonable cause to believe discrimination occurred, then the EEOC can enforce the violations by filing a lawsuit. If it decides not to litigate the matter, the charging party will receive a notice of right to sue letter. If the EEOC determines that it has not found reasonable cause to believe that discrimination occurred, it will issue a notice which is called a dismissal and notice of rights. The notice informs the employee or applicant that he or she has the right to file a lawsuit in federal court within ninety days. This means that the employee can then file a lawsuit regarding his or her discrimination claim.

State Level: The Florida Commission on Human Relations

Most states and local agencies also have laws which prohibit discrimination – including the State of Florida. The Florida legislature created the Florida Commission on Humans Relations (FCHR) to address discrimination and enforce the Florida Civil Rights Act. If an employee maintains that he or she has been subjected to a charge of discrimination, the employee can file a complaint with the FCHR. The FCHR also has a questionnaire available which solicits information about claims of employment discrimination. This questionnaire assists the FCHR in determining whether it has jurisdiction over the discrimination claims. The FCHR will similarly review and investigate the charge of discrimination (including color, sex, race, religion, national origin, disability, marital status, and age) and reach a decision as to the claim.

Local Level: The Pinellas County Office of Human Rights

On a more local level, the Pinellas County Office of Human Rights was established to protect residents of Pinellas County from cases of discrimination – including employment discrimination. The Pinellas County Office of Human Rights administers Chapter 70 of the Pinellas County Code of Ordinances. This Code prohibits discrimination in employment because of race, color, religion, sex (including pregnancy discrimination and sexual harassment), sexual orientation, national origin, age, marital status, or disability. To file a complaint with the Pinellas County Office of Human Rights (PCHR), the employee or job applicant completes what is known as an “Employment Discrimination Questionnaire.” The PCHR will investigate the employment discrimination complaint, facilitate conciliation of an employment discrimination complaint, and encourage mediation. The PCHR also conducts training for employers.

Know Your Rights

A claim may be filed with the PCHR, FCHR, or it can be dual-filed with both the FCHR and the EEOC. It is important to know that an employee (or applicant) is required to file a charge of discrimination before it can file a lawsuit. Further, there are time limits for filing a claim. You must ensure that your claim is timely filed. Likewise, if you are an employer who has received a charge of discrimination or similar compliant, it is important to respond to the charge and provide as much information to defend the charge of discrimination.

Employment Law Attorneys at Battaglia, Ross, Dicus & McQuaid, P.A.

If you feel that you have been the target of employment discrimination – or if you are an employer that has received a charge of discrimination – contact the employment law attorneys at Battaglia, Ross, Dicus & McQuaid, P.A. today. Our experienced employment lawyers can speak with you regarding your situation.

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Recent Executive Orders and Local Announcements Regarding Business Closures and Openings https://www.stpetelawgroup.com/business-closures-and-openings/ Mon, 04 May 2020 14:15:20 +0000 http://54.160.171.51/?p=2637 Ron DeSantis recently announced that Florida will start lifting stay-at-home orders, local businesses are questioning whether they can now open their doors.

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certain non-essential businesses must close during the coronavirus pandemic. However, with State of Florida Governor Ron DeSantis recently announcing that Florida will start lifting stay-at-home orders, many local businesses are questioning whether they can now open their doors for business. Indeed, on April 29, 2020, Florida Governor Ron DeSantis issued Executive Order # 2020-112 – Phase One. Safe. Smart. Step-by-Step. Plan for Florida’s Recovery. This article will review the sections of Executive Order 20-112: Phase 1 which apply to business closures, business openings, business restrictions, and other related issues. This article will also review Pinellas County’s recent press announcement related to business closures, openings and restrictions.

Executive Order 2020-112: Phase One

“Executive Order # 2020-112 – Phase One. Safe. Smart. Step-by-Step. Plan for Florida’s Recovery.” goes into effect on May 4, 2020. In pertinent part, Executive Order 20-112 sets forth the following restrictions for businesses as addressed by previous Executive Orders:
  1. Bars, pubs and nightclubs that derive more than fifty percent of gross revenue from the sale of alcoholic beverages shall continue to suspend the sale of alcoholic beverages for on-premises consumption.
  2. Restaurants and food establishments licensed may allow on-premises consumption of food and beverage, so long as they adopt appropriate social distancing measures and limit their indoor occupancy to no more than 25 percent of their building occupancy. The Executive Order further provides that outdoor seating is permissible with appropriate social distancing. Appropriate social distancing requires maintaining a minimum of six feet between parties, only seating parties of ten or fewer people and keeping bar counters closed to seating.
  3. Gyms and fitness centers shall remain closed.
  4. The prohibition on vacation rentals still remains in effect.

Executive Order 20-112 also sets forth the following procedures applicable to other business services affected by previous Executive Orders:

  1. In-store retail sales establishments may open storefronts if they operate at no more than twenty five percent of their building occupancy and abide by the safety guidelines issued by the Centers for Disease Control and Prevention (CDC) and Occupational Safety and Health Administration (OSHA).
  2. Museums and libraries may open at no more than twenty-five percent of their building occupancy provided that local public museums and local public libraries may operate only if permitted by local government, and any components of museums or libraries that have interactive functions or exhibits, including child play areas, remain closed.
Executive Order 20-112 further provides that hospital ambulatory surgical centers, office surgery centers, dental offices, orthodontic offices, endodontic offices or other health care practitioners’ offices may perform the elective procedures which were previously prohibited by Executive Order 20-72; however, these electric procedures may resume only if:
  1. The facility has the capacity to immediately convert additional facility-identified surgical and intensive care beds for treatment of COVID-19 patients in a surge capacity situation;
  2. The facility has adequate personal protective equipment to complete all medical procedures and respond to COVID-19 treatment needs, without the facility seeking any additional federal or state assistance regarding personal protective equipment supplies;
  3. The facility has not sought any additional federal, state, or local government assistance regarding personal protective equipment supplies since resuming elective procedures; and
  4. The facility has not refused to provide support to and proactively engage with skilled nursing facilities, assisted living facilities and other long-term care residential provider.
Executive Order 20-112 also provides that while all persons in the State of Florida shall continue to limit their personal interactions outside their home, persons may provide or obtain all services and activities which are currently allowed (for instance, those that are included as activities set forth in Executive Order 20-91). However, those persons shall continue to follow safety guidelines issued by the CDC and OSHA. The Executive Order states that violations of this Executive Order amount to a second degree misdemeanor and is punishable by imprisonment not to exceed sixty days, a fine not to exceed five hundred dollars, or both.

Pinellas County Announcements

Pinellas County has further elaborated on certain businesses which may open and must remain closed in Pinellas County Florida. On May 1, 2020, Pinellas County gave a press release announcing that the following activities and businesses pose a higher risk of transmission and thus will remain prohibited or closed during Phase 1:
  1. Concerts;
  2. Music halls;
  3. Bars;
  4. Pubs;
  5. Nightclubs;
  6. Gyms;
  7. Dance studios;
  8. Yoga studios;
  9. Amusement parks;
  10. Waterparks;
  11. Vacation rentals; and
  12. personal services such as haircuts (which would include barbershops, hair spas, and hair salons);
  13. personal services such as nail salons.

On May 1, 2020, Pinellas County also announced the following:

  1. Restaurants and food establishments may reopen dining areas with a maximum patron occupancy of twenty-five percent of the building capacity. Outdoor seating is allowed without capacity percentage limitations. Bar counter seating must remain closed.
  2. Many other nonessential retail businesses that have been closed to foot traffic may resume at limited capacity using social distancing principles.
  3. In-store activities can resume to a maximum of twenty-five percent patron occupancy of the building capacity.
  4. Pet grooming and car washes are specifically among the businesses that may operate starting Monday, May 4, 2020.
  5. The County’s guidance strongly encourages residents to wear masks at indoor businesses like grocery and retail stores.
  6. Museums and libraries may reopen to a patron occupancy of twenty-five percent of the stated building capacity, but interactive functions and exhibits and child play areas must stay closed. Cities may decide to keep museums and libraries closed.
  7. Curbside pickup and delivery by businesses is allowed.

Ensure Compliance

More orders will likely follow. It is important that businesses ensure compliance with the Governor’s Executive Orders and the Pinellas County Board of County Commissioners’ Orders. Businesses who do not comply with these Orders can face an order to close. Violators can also face criminal fines or penalties. The employment law attorneys at Battaglia, Ross, Dicus & McQuaid, P.A. hope that you remain healthy and safe during these difficult times. If you are in need of legal assistance please don’t hesitate to contact us for a consultation.

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Individual Liability for Unpaid Minimum Wage and Overtime Claims https://www.stpetelawgroup.com/individual-liability-for-unpaid-minimum-wage-and-overtime-claims/ Mon, 10 Feb 2020 13:13:51 +0000 http://54.160.171.51/?p=2429 Did you know that if you have managerial authority of a company – such as being an officer, owner, or director of a company – that you may be individually liable for an employee’s unpaid wages and/or overtime wages? The Fair Labor Standards Act (“FLSA”) establishes minimum wage and overtime requirements that all employers are […]

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individually liable for an employee’s unpaid wages and/or overtime wages? The Fair Labor Standards Act (“FLSA”) establishes minimum wage and overtime requirements that all employers are required to follow. The FLSA also defines an employer broadly. Under the FLSA, an employer includes “any person acting directly or indirectly in the interest of an employer in relation to an employee.” The FLSA thus contemplates lawsuits against any person who acts on behalf of a corporate employer and who asserts control over the conditions of the employee’s employment. This definition of employer has been interpreted to generally mean anyone who has supervisory power over other employees. It is for this reason that under the FLSA a plaintiff may elect to directly sue officers, owners, and directors of the corporate employer in addition to the corporate employer. Essentially, what this means is that under the FLSA, an individual may be liable for unpaid wages and overtime if they exercise significant control over the company’s operations. Whether an individual is liable under the FLSA is analyzed on a case-by-case basis, since the statute does not include a bright-line test. However, to be personally liable, an officer must either be involved in the day-to-day operation of the company or have some direct responsibility for the supervision of the employee.

How to Determine If an Individual Is Liable Under the FLSA

To make this determination of whether an individual is liable under the FLSA, the courts in unpaid wage cases may look at factors such as:
  • whether the individual has a significant ownership interest in the corporation;
  • whether the individual has personal responsibility for the decision that led to the conduct which allegedly violated the statute;
  • whether the individual had control of significant aspects of the corporation’s day-to-day operations, including the compensation of employees, or whether the individual is responsible for day-to-day management of the company;
  • whether the individual has the responsibility and/or the power to maintain employment records;
  • whether the individual is responsible for the operations of company;
  • whether the individual is responsible for setting the pay policies or whether the employer is responsible for setting the pay practices;
  • whether the individual is responsible for setting the wages of the employees and/or has the power to determine salaries, and
  • any other signs of operational control that demonstrate control over significant aspects of the corporation’s day-today functions.
Federal courts further look to the economic reality of the relationship between the parties in determining whether an individual defendant is an “employer” subject to FLSA liability. This test examines whether the individual: (1) has the power to hire and fire employees, (2) supervises and controls employee work schedules or conditions of employment, (3) determines the rate and method of payment (in other words, the individual is responsible for setting the employer’s pay), and (4) maintains employment records. The case law in the Eleventh Circuit – the controlling federal appellate court in Florida – has previously looked to whether the individual controls the financial affairs and exercises substantial supervisory powers. In fact, an officer, owner, director, and/or manager can also be liable for damages under a general theory known as “piercing of the corporate veil.” The result of piercing the corporate veil means that a corporation’s shareholder becomes liable for the corporate liabilities. The Eleventh Circuit held in Molinos Valle Del Cibao, C. por A. v. Lama, 633 F.3d 1330, 1349 (11th Cir. 2011) that to state a cause of action for piercing the corporate veil, a plaintiff must show the following factors:
  • the individual shareholder dominated and controlled the corporation to such an extent that the shareholders were alter egos of the corporation;
  • the corporate form was used for an improper purpose; and
  • the improper use of corporate form caused injury to the claimant.
If the plaintiff fails to allege improper conduct such as fraud in the formation or use of the corporation, there is a failure to allege sufficient facts to proceed under an alter ego theory, and the case will be dismissed. The plaintiff must show the corporation is the alter ego of the shareholders and that it was employed for fraudulent or misleading purposes.

What to Do If Faced With an Unpaid Wage Lawsuit

If you are an individual faced with an unpaid wage lawsuit and the plaintiff has sued you individually, it is very important to meet with an experienced employment law attorney who can review and aggressively defend the lawsuit. If the plaintiff has alleged insufficient facts or cannot establish that they are entitled to judgment as a matter of law, then you may be entitled to a dismissal of the case or a judgment without the necessity of a trial. In fact, there are numerous labor & employment cases where an individual was sued for liability for unpaid wages or overtime, and the court found that there was no liability. It is important to have an experienced employment attorney who is familiar with this case law. For instance, if the individual does not have operational control of significant aspects of a company’s day-to-day functions, then that individual is not an FLSA employer. This body of case law has held that no individual liability lies where the individual did not take such an active role as to be held personally responsible: the individual did not arrange contracts, manage day-to-day operations, or oversee employee compensation. Another case found that no individual liability existed when the individual did not direct the day-to-day operations of the business, did not set employee schedules, did not contract with vendors or employees, and could not hire or fire employees. It is important to ensure that as a company, you are complying with all wage and overtime laws. Not only can your company face a lawsuit for a violation, but the officer, owners, directors, and/or managers can face exposure as well. The law firm of Battaglia, Ross, Dicus & McQuaid, P.A. handles and defends unpaid wage and overtime wage claims. For more information, please contact our office at 727-381-2300. Our labor law attorneys will provide a free initial consultation and will aggressively represent your interests.

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