Major Online Retailer sued for $100m by Warehouse Workers


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A court ruled 100,000 warehouse workers from a major online retailer are owed more than $100 million in back wages and penalties for time spent in security lines at the end of their shifts. Workers were required to pass through metal detectors at the end of every shift as a measure put in place to clamp down on employee theft. As a result, these security measures cost the company hefty penalties in an extremely complicated and lengthy wage and hour lawsuit. According to employees, the security check often took up to 25 minutes, for which they were not compensated. As they were not allowed to leave before undertaking the mandatory security check, the plaintiffs argued that the time spent waiting for and undergoing the checks should be paid as time worked.


The case was first dismissed in a Nevada district court in 2011, however,  in April, the 9th U.S. Circuit Court of Appeals reversed that decision because the workers have a ”plausible claim for relief”.  The attorneys for the warehouse workers have plans to take the lawsuit national with the intent of trying to enlist workers from warehouses throughout the country, regardless of whether the employees work directly for the companies themselves, or through a staffing agency. Either way, companies using staffing providers to employ their temporary workers should ensure they have proper communication, plus checks and balances with the providers in place. More often than not, client companies are considered co-employers and could be held liable for the mistakes of their staffing providers.

 

 Read about the full case from Security Info Watch

Though Emergent strives to publish the most current information on topics of reader interest, Emergent cannot guarantee or warrant the accuracy or completeness of posted information in any way. Click here to read our full disclaimer. 

Wage-And-Hour Lawsuits Up For Five Years In A Row


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Wage-and-hour lawsuits are up for the fifth straight year according to a study undertaken by the Federal Judicial Center. Between April 1, 2012 and March 31, 2013, plaintiffs brought a total of 7,764 suits. This is a 10 percent jump over the course of the year. Big box retailers, banks, start-ups and notable chain restaurants are among those accused of withholding workers’ pay. Labor and employment lawyers believe this is symptomatic of a continuing trend. The first spike in wage and hour cases began in 2003, when the number of lawsuits jumped from 2,035 to 4,055.  By 2007, the number had climbed to 6,786 during the course of the year. Even though the number of cases dipped slightly in 2008 - most likely due to preoccupation with the recession - they have been continuously on the rise since then.


The wage-and-hour cases usually fall under the same three categories: salaried employees who think they should be owed overtime pay, hourly workers who believe they were not paid for all hours worked, and restaurant workers who think they are owed additional pay under the FLSA’s tip credit provision. Many regulations under the FLSA were written in the 1930s, making it tricky for companies to comply in the modern workplace. These days, increasing numbers of companies employ employees around the globe and work e-mails are increasingly delivered to the phones of employees outside of regular working hours, which can spark compliance issues and make work hours difficult to monitor. Further complexities arise as companies must also comply with state wage and hour regulations, which often differ, and occasionally appear to contradict FLSA stipulations. In terms of geography, California and Florida typically see the most wage-and-hour lawsuits, however New York, Missouri, and Georgia are now starting to see major increases as well.


When utilizing contingent, project-based workers wage-and-hour laws can become even more complicated. The first step in avoiding such lawsuits is to determining whether a worker should be classified as exempt or non-exempt. Accurately analyzing time records, including a meal break where relevant, is another way to make sure employees are properly paid for all hours worked. With the modernization of the workplace, restricting e-mail and cell phone use after hours will also help in preventing litigations.


If you have any wage and hour questions regarding the use of temporary, project-based or contract workers in any state, please contact us at info@emergent.com or 855 250 5000. Our contingent labor experts represent some of the most experienced payrolling, legal, HR and risk management experts in the business.

 

Read more about the rise of FLSA cases in Federal Court

Though Emergent strives to publish the most current information on topics of reader interest, Emergent cannot guarantee or warrant the accuracy or completeness of posted information in any way. Click here to read our full disclaimer. 

Undocumented Workers May Still Recover Unpaid Wages Under FLSA


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Undocumented workers who are not authorized to work in the United States are nevertheless entitled to recover unpaid wages, including overtime compensation, under the Fair Labor Standards Act (FLSA), according to the 11th U.S. Circuit Court of Appeals.


Mario Feliciano, Augustin Milan and seven of their co-workers sued their former employer, Safe Hurricane Shutters Inc., its president and CEO, and two directors to recover unpaid overtime compensation. The jury found in favor of the workers, and the trial court ordered the company and the individual defendants to pay damages in an amount equal to two times the lost overtime wages.


The defendants appealed, and the 11th Circuit affirmed the trial court’s decision. On appeal, the defendants first argued that Milan was not entitled to recovery under the FLSA because he was an undocumented worker.


In analyzing whether an undocumented worker was entitled to recovery under the FLSA, the 11th Circuit reviewed the decision in Hoffman Plastic Compounds, Inc. v. NLRB, 535 U.S. 137 (2002), a U.S. Supreme Court decision. In Hoffman the Supreme Court held that undocumented immigrants who are unlawfully terminated for participating in union activity are not entitled to back-pay awards. Safe Hurricane Shutters and the individual defendants argued that, based on the Hoffman decision, Milan was not entitled to damages under the FLSA because he was an undocumented worker.


The 11th Circuit disagreed and held that the Hoffman case limited the remedies available to undocumented workers under the National Labor Relations Act but did not change the broader definition of an “employee,” which includes undocumented workers. As a result, the appeals court found that the Hoffman decision did not control its ruling in the Safe Hurricane suit.


For a more details on the case, read the full article on Lexology.com

Though Emergent strives to publish the most current information on topics of reader interest, Emergent cannot guarantee or warrant the accuracy or completeness of posted information in any way. Click here to read our full disclaimer. 

Employing Temporary Labor in California... What You Need To Know


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Webinar, May 1st 11:30 PST (2:30 ET)

Register For The Virtual Conference


HR.com and The Institute of Human Resources have invited Emergent’s President Bill Inman, to host a webinar on the challenges involved in employing temporary labor in California – and how to mitigate those challenges.


Temporary, freelance and project-based workers are fast becoming a staple of the U.S. workplace and research suggests that around a third of all jobs are now temporary in nature. While utilizing temporary labor can provide significant cost savings over taking on internal, direct hire workers, engaging temporary staff of all kinds can expose your company to significant risks....especially in the great state of California! 

Our virtual conference - led by Emergent President, Bill Inman - will alert you to key CA compliance issues to watch out for and will show you how your company can mitigate these risks effectively. 

Forty per cent of businesses plan on hiring temporary workers in 2013 and this number is likely to increase over the next few years as businesses realize the benefits of a more flexible workforce. 

However, as the usage of temps and contractors grows, rules and regulations regarding the usage of these workers (and the associated litigation surrounding them) will continue to grow, both at a federal and state level. 

Keeping on top of the changing compliance landscape will be essential for the modern HR professional. If your company currently works with temporary workers or plans to in the near future, you should attend this conference. 

Emergent is part of a family of companies that is one of the largest employers of temporary labor in the US, employing hundreds of thousands of workers each year for companies nationwide, including many Fortune 100 clients. Our family of companies is also the largest provider of temporary labor employment services for the entertainment industry and as a result, employs hundreds of thousands of people in California. 

Our team of California based legal, payroll, HR, risk management and operations professionals are some of the most experienced in the contingent workforce industry today. Join us for our webinar on Wednesday, May 1st at 11:30 PST and get the benefit of our experience in employing California temporary workers!

Though Emergent strives to publish the most current information on topics of reader interest, Emergent cannot guarantee or warrant the accuracy or completeness of posted information in any way. Click here to read our full disclaimer.

Emergent Team Exhibiting at Talent Management Conference


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The Emergent Team is thrilled to be exhibiting at the SHRM Talent Management Conference in Vegas next week. Come swing by and say hi, we’re at booth 526! 

   

We’ll be showcasing our new model that aims to change the way companies source and engage temporary and project-based workers. Our TrueCost® solution helps eliminate high markups, hidden fees, and risky employment practices often found in the staffing industry.  

   

Emergent’s solution is fashioned after the methods that have been successfully practiced by the entertainment industry for decades. We know because our family of companies has helped entertainment production companies keep their staffing costs low by employing their project-based workers for over three decades. Now, 35 years later, we’re looking to help other industries benefit from all that we have to offer.  

   

Stop by our booth and find out how we can help your company save between 40 and 60% on recruiting temporary and project based workers this year!

 

If you’re not attending the event, call us at 855 250 500 or e-mail us at info@emergent.com if you’d like to know more. 

   

 Hope to see you in Vegas! 

Though Emergent strives to publish the most current information on topics of reader interest, Emergent cannot guarantee or warrant the accuracy or completeness of posted information in any way. Click here to read our full disclaimer.