Growing number of workers complain about being shortchanged

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One of the most common complaints is workers who fail to get overtime pay as required by law.

There’s a simple workplace axiom: You put in your hours and get paid for them. Alas, this doesn’t always happen.

There’s been a record spike in wage and hour violation claims by employees thanks to sustained tough economic times, an increase in enforcement by the government, and confusion over -- or disregard of -- overtime pay provisions.

Seyfarth Shaw

Wage and hour lawsuits have been soaring, according to federal judicial caseload statistics.

Already this year, there have been a record number of lawsuits filed under the Fair Labor Standards Act, which covers wage and hour provisions, with 7,064 filed so far this year. That's up from 7,006 filed for all of 2011 and just 2,035 cases filed a decade ago, according to data compiled by employment law firm Seyfarth Shaw.

The Department of Labor's wage and hour division collected a record $224 million in back wages from employers in the latest fiscal year for more than 275,000 workers.

“Many workers still have a hard time taking advantage of their legal protections,” said Jeffrey Michael Hirsch, associate professor at the University of North Carolina’s law school and a contributing editor to the Workplace Prof Blog.  “Low-wage employees, in particular, often don't earn enough to attract attorneys, although class actions might help in some cases, so you see a lot of cases of unremedied wage theft.”

In those cases, he said, the Labor Department sometimes gets involved, especially to "send a message to employers."

The Labor Department, which sees 125 to 150 cases annually, has stepped up its efforts and pursues litigation when it cannot settle out of court, said Sonia Melendez, a spokeswoman for the agency.

“The wage and hour division has stepped up enforcement efforts on behalf of vulnerable workers — such as low-wage workers, migrant or seasonal laborers, workers with limited English language skills and workers who are unaware of their rights or are reluctant to file a complaint when subject to labor violations,” she said.

The bulk of wage and hour lawsuits deal with  misclassification of employees, alleged uncompensated ‘work’ performed off the clock and miscalculation of overtime pay, said Richard Alfred, an attorney and chairman of Seyfarth Shaw's wage and hour litigation practice.

He attributes the rise in lawsuits to: 

  • Weakness of the economy, resulting in layoffs
  • Outdated federal and state laws, which have failed to keep up with changes in technology
  • A lack of clarity in existing law, making it difficult to classify which workers need to be paid for overtime
  • Potential for lucrative recovery by plaintiffs and their attorneys

High-profile cases, such as a wage and hour case involving Wal-Mart, have gotten many employees, employers and lawyers to stand up and take notice.

In May, Wal-Mart agreed to pay nearly $5 million in back wages and damages to more than 4,500 employees who were misclassifed as being exempt from overtime rules. That paled in comparison to the $352 million the company paid in 2008 to settle allegations it didn't provide workers with proper rest and meal breaks but served notice that the Labor Department is paying close attention.

“Misclassification of employees as exempt from FLSA coverage is a costly problem with adverse consequences for employees and corporations,” said Secretary of Labor Hilda Solis at the time of the announcement. “Let this be a signal to other companies that when violations are found, the Labor Department will take appropriate action to ensure that workers receive the wages they have earned.”

Massive monetary awards have increased the profile of such cases, making them attractive to some lawyers, Hirsch said. But he said the awards also have made smart employers more careful. "One thing a lot of management-side firms do is perform internal audits for clients to make sure there aren't problems, particularly with overtime classifications," he said.

Not everyone is as focused on the issue, he added. “I'd like to think that employers of low-wage workers are getting the message, but I'm not sure that's the case in general. You still hear about violations all the time.”

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There will be a huge spike in these violations if Mittens Romney wins the election. His corporate friends will have total free range to end the following: labor laws,the minimum wage,OSHA,the EPA,and child labor laws for starters. Welcome back to 1910,like sweat shops? Coming soon to America the "good: old days of 80 work weeks,slave wages and unsafe working conditions with no pesky labor unions to interfere! Enjoy!!!!!!!

  • 3 votes
Reply#53 - Thu Jul 26, 2012 10:28 AM EDT

Tony,

More dumb rhetoric from the left!

  • 1 vote
#53.1 - Thu Jul 26, 2012 10:41 AM EDT

Bernie - Wow! Enlightenment? I thought you opposed labor laws, minimum wage, OSHA, the EPA and organized labor?

OK...you aren't in favor of child labor, right?

  • 2 votes
#53.2 - Thu Jul 26, 2012 10:45 AM EDT

stone,

What????

    #53.3 - Thu Jul 26, 2012 10:50 AM EDT
    Reply

    Tom, unfortunately, we will always have these underpaid workers because they don't like to see anything taken out of their checks, and most would rather be paid in cash. What they don't realize, until its too late, is that when they want to retire they realize that the Social Security they expected or are eligible for will not support them, because neither they or their employer has paid into the fund. They have not paid into a pension or contributed to a 401K and have not saved any of the money they earned. They also haven't admitted to themselves that the subpar wages they received were based on "Union Wages" which were reduced by their employer, who deposited the extra cash into their own personal pockets and laughing all the way to the bank. How else would they be able to have vacation homes in the tropics, travel the world and have offshore banking accounts ??? It certainly didn't come from their own personal physical labor, and sweat (unless you call shielding profits and not paying their fair share of taxes; "WORK")

    • 1 vote
    Reply#54 - Thu Jul 26, 2012 10:28 AM EDT

    Of course, Mitt backs the Ryan plan which gets rid of the National labor Relations Board.

    Profit before people.

    Figures.

    • 3 votes
    Reply#55 - Thu Jul 26, 2012 10:29 AM EDT

    Mike,

    And, more stupid logic from the left!

    • 1 vote
    #55.1 - Thu Jul 26, 2012 10:42 AM EDT

    Stupid in what way?

    • 2 votes
    #55.2 - Thu Jul 26, 2012 10:45 AM EDT

    Musician,

    Your whole premise........

    • 1 vote
    #55.3 - Thu Jul 26, 2012 10:52 AM EDT
    Reply

    The system is weighted in favor of the employer who will use that advantage to his benefit. If one studies history they will see that current conditions are in a direct parallel with that which brought about organized labor at the turn of the last century. The principal advantage employers currently have is 15-million unemployed in the labor pool that will submit to abuse just to get a job. The disadvantage for those employed is that if they stand up for their rights, they most likely will be dismissed in favor of one of those 15-million. There is absolutely no sustainable argument that unions have not abused the system themselves, but the pendulum swings in both directions.

    • 3 votes
    Reply#56 - Thu Jul 26, 2012 10:29 AM EDT

    I didn't read all the comments here - but I can attest to the fact that this is NOT just an issue with low wage employees. In fact, I would argue that the problem gets worse as the pay rate goes up. And when you are a salaried employee, the expectation for many companies is that you work for as long as is required to get the job done.

    My wife just went through this with her employer, where not only was her pay reduced 20% after a job change within the company (forced upon her by the inept ceo), their expectations are that she do both the job duties she had previously and those of the person she replaced. It's a no-win situation that she will fail at even though she's working 12 hour days and on weekends in an effort to just catch up. They understand she's going to fail as they've set it up this way.

    And legally, she has little to no recourse. So what do people in situations like this do other than seek employment elsewhere.

    • 1 vote
    Reply#57 - Thu Jul 26, 2012 10:29 AM EDT

    JM,

    Or, start your own company like millions have done! Simple..........Try it!

      #57.1 - Thu Jul 26, 2012 10:43 AM EDT

      bernie-1722829, it is always amusing to see one who totally believes in the exploitation of people. You appear to be another sociopath. Just remember, karma can be a bitch.

      • 2 votes
      #57.2 - Thu Jul 26, 2012 10:57 AM EDT

      Just,

      Amazing that you think I believe in exploitation of others. Amazing you think I appear to be just another sociopath.

      I believe that you are just as capable of being a successful business owner as anyone. I believe that you are just as capable of becoming the "mean, rotten, disgusting" 1% as anyone!!....without the help of Barack Obama.

      Next........?

        #57.3 - Thu Jul 26, 2012 11:12 AM EDT

        Just,

        Forget it........

          #57.4 - Thu Jul 26, 2012 11:12 AM EDT
          Reply

          The reason a 40 week was instituted was for the worker to be rested a preform his job more efficientley. If he couldn't keep up because of an increase oof work load they were to hire another employee to pick up the slack. Now with the GREED element the employee wants overtime and the employer wants to work you without either no pay or pay you under the table. Either way the employee gets screwed.

          • 1 vote
          Reply#58 - Thu Jul 26, 2012 10:32 AM EDT

          Jim,

          So, start your own company so you can "screw" your employee. Simple........

            #58.1 - Thu Jul 26, 2012 10:45 AM EDT
            Reply

            Welcome to the United States of Corporate America. Now that we've almost succeeded in dismantling the unions (you know, those nasty little buggers that always want decent working conditions and fair pay) and on the verge of buying outright the presidency of the United States, we'll be able to pay everyone the new minimum wage, to be decided by our bought and paid for congressmen and women. Oh yes, P.T. Barnum, you were right. There IS a sucker born every minute. And in these corporate ran states it seems that there's an abundance of suckers. So we'll keep feeding out that B.S. about "job creators", and keep demanding our tax breaks while we screw our employees and make them smile and say "thank you".

            • 2 votes
            Reply#59 - Thu Jul 26, 2012 10:33 AM EDT

            Ron,

            If there is an "abundance of suckers", start your own business if it's so easy. Go ahead, start your own business so you too can "screw" your employees. Simple.......

            • 1 vote
            #59.1 - Thu Jul 26, 2012 10:47 AM EDT

            Bernie talks like a guy with a paper ass-hole. Hey Bernie, lend me the $100k start-up fee, OK pal?

            • 2 votes
            #59.2 - Thu Jul 26, 2012 11:39 AM EDT

            Sicken,

            You don't need 100K, moron! Besides, why would you want to be in debt? And, since when does being in business assure you of all those "riches"?

            It takes mre than money!! How's about sweat equity? How's about long hours? How's about putting up the collateral and still not being guaranteed success?

            More dumbness from the left.....And, talk about a paper ass-hole and NO ASS-HOLE at all!

            Next..........?

            • 1 vote
            #59.3 - Thu Jul 26, 2012 11:53 AM EDT

            Again, talking like a guy with a paper ass-hole. How does one go about starting a business without any capital? And why are you posting on the clock?

            You talk a good game, my guess is Daddy made room for you at the company business because you couldn't find a job on your own? Or else a paid shill.

            • 3 votes
            #59.4 - Thu Jul 26, 2012 12:01 PM EDT

            Bernie, while I don't agree with most of the leftist view on things, I think you are a little over the top with your comments. I would love to start my own business. I have a few ideas that I would love to implement that I think would really take off. However, it DOES take capital to start most businesses, including the ones I dream of starting. Maybe some day... But, try not to be so condescending. It makes those of us with conservative values look bad. And please stop with the name calling.

            I actually see both sides of the coin here. The company I work at just switched to salary-based pay (based on 40 hours) , but most of the employees still have to work 50+ hours just to meet schedules. I think that is highly unfair, but I still have my reasons to be opposed to unions. They pose a problem for the opposite extreme - lazy, overpaid employees that can't be fired because of their protection by the union.

            I'm really not sure what the solution is that would be fair to both the employer and the employee...

            • 2 votes
            #59.5 - Thu Jul 26, 2012 12:11 PM EDT

            Sicken,

            Hey, jerk. Started my own business with just $1,000 after leaving the service. Grew it into sales of $2,000,000.....without a formal higher education. If a putz like me can do it, surely a highly educated, caring man like you can!!

            So, quit waiting for some schmuck in Washington to "help" you or waiting for some other jackass to make you "rich"......You'll wait all your life.

            sad...............

              #59.6 - Thu Jul 26, 2012 12:12 PM EDT

              59.6 Looks like your Potty Mouth has you goofing off at work.

              • 3 votes
              #59.7 - Thu Jul 26, 2012 12:19 PM EDT

              Well putz, I HAVE done exactly this, twice in fact. I was fortunate enough to have the seed money, but I'd be willing to bet most DON'T have this luxury.

              Not waiting for anyone in Washington, I found my own way. But, coming on here and throwing a blanket statement out like "Simple-start your own business", is absurd. That is what is sad. Maybe grow a heart to go with your paper ass-hole??? ;)

              • 3 votes
              #59.8 - Thu Jul 26, 2012 12:24 PM EDT

              Sicken,

              You're a man that should be admired!! Those posting here are knocking you.

              No, what's absurd is all these people sitting arond and waiting for someone else to make them "happy". What's absurd is all these people blaming others for their shortcommings. What is absurd is some jerk in Washington creating a rift between the races, the religions, the well off and the not so well off. Some jerk in Washington telling you, Sicken "You didn't become sucessful by yourself....That your sweat equity had nothing to do with it".

              Sad............

                #59.9 - Thu Jul 26, 2012 12:38 PM EDT
                Reply

                Just save up your proof and collect documentation for every time the company has done this and get your buddies to do the same. Get a nice healthy pile going and when you have a new job ready report the whole pile at once. You will get your money and they will get fined for each offense and the fines are not cheap.

                  Reply#60 - Thu Jul 26, 2012 10:33 AM EDT

                  As CEOs and business heads see their salaries and benefits skyrocket,the average American worker is making less for increased work. These are Romneys 1% friends who are destroying the Middle Class, cutting jobs,benefits and sending them out of America because their greed has no limits and they only care for money. Money is their God,and talk about not supporting America! Evil,greedy,souless 1%.

                  • 1 vote
                  Reply#61 - Thu Jul 26, 2012 10:34 AM EDT

                  So is there a clear legal definition of an exempt versus non-exempt employee?

                    Reply#62 - Thu Jul 26, 2012 10:34 AM EDT

                    How about calling all staff RNs supervisors because they are responsible for the CNA working with them and give them a salary - no overtime. I am not lazy. I bust my butt to give quality care and document it. Sometimes you have to stay past your shift. The CNA gets overtime. The LPN gets overtime. I get additional duties because I am the RN. And FYI - there is a real supervisor on duty. Also they want you to help out in a pinch and be a team player but then pay you the same hourly rate as your base salary. Why? A loophole somewhere allows it and they save money. Companies do not care about employees. They care about the bottom line. If cuts need to be made - they start with those making the least. Top heavy management still gets theirs. Greed will cause the next revolution.

                      Reply#63 - Thu Jul 26, 2012 10:37 AM EDT

                      A lot of the K-Mart Republicans that are touting root-hog-or-die capitalism are going to get very skinny when it comes about.

                      • 1 vote
                      Reply#64 - Thu Jul 26, 2012 10:37 AM EDT

                      Illegal labor or call it slave labor or cheap labor anyway you look at it it is eating away at our economy like termites. We are turning third world they all know to come here soon to get amnesty and our entitlements as they reap the benefits of our screwed up government policies.

                        Reply#65 - Thu Jul 26, 2012 10:38 AM EDT

                        The bottom line is that this article is about workers not getting paid for working. I didn't read anyting in the article about Obama, unions or facebook.

                        • 1 vote
                        Reply#66 - Thu Jul 26, 2012 10:39 AM EDT

                        Was this article written by someone who worked overtime? The title doesn't make sense....."Pulled some OT?More and more, the means working for the boss for free"

                        • 1 vote
                        Reply#67 - Thu Jul 26, 2012 10:39 AM EDT

                        Hey job creators you have had over 10 years of big tax breaks where are all the jobs you've created? Overseas you say! Thanks for being so patriotic! Nothing like holding Americas Middle Class hostage and playing your little game of blackmail with American jobs. Such great Americans and Christians too! Burn in Hell you bastards!

                        • 2 votes
                        Reply#68 - Thu Jul 26, 2012 10:40 AM EDT

                        Yeah corporate America! You can go f**k yourself. I hope you spend your eternity in hell licking hot oil off a goat's anus.

                        Too far?

                        • 1 vote
                        #68.1 - Thu Jul 26, 2012 10:52 AM EDT
                        Reply

                        Our worldly warm welcome man Obama with his Clinton save the world policy is getting a bit too much to pay for.

                        • 1 vote
                        Reply#69 - Thu Jul 26, 2012 10:40 AM EDT

                        The future generation will be worked to death never to retire. Blame Obama ! Ohh I mean GW ! . Or just blame it on the Euro and big bank freaks. the NWO ! People do not matter these days only profits matter. Yes we are mad ..Do you ever plan to uhhhh do anything with your life in this dog eat dog over populated rat race . One day at a time ..

                          Reply#70 - Thu Jul 26, 2012 10:44 AM EDT

                          This started a century & a half ago.

                            #70.1 - Thu Jul 26, 2012 10:48 AM EDT
                            Reply

                            Its like with housing... the only ones buying them up are investors..who are in turn renting them out...great bailout plan...bail out the folks who created the massive housing fail d/t greed and trickery.

                            That housing fail was deliberate...shook the tree...middle class was getting too powerful, more than any other time in history..middle class was thriving until boom bust..it was a well orchestrated plan.

                            • 1 vote
                            Reply#71 - Thu Jul 26, 2012 10:46 AM EDT

                            I worked for a catholic facility that a few years back a management company took over. They changed the employee handbook and made us all sign a form saying we can be fired at a given notice for any reason. They repeatedly told us to do the right thing and we would be alright. They increased managers and decreased hourly staff and doubled up the jobs we used to do. They passed on more of the managers previous paperwork to the hourly staff. These managers suddenly became "hands off" managers who rarely helped and often sat in meetings or in their offices. I watched one chase down a Nurses Aid who was busy with another patient only to tell her to go wipe a mans runny nose when she was finished with the other patient. With the increased work load alot of people skipped their lunch breaks and the two 15 minute breaks we all managed to take before the change. They threatened employees with absolutely no overtime. The managers were instructed to write people up for ridiculous things. Some quit while others like myself stayed on till I found a better job. Most of the 20+ year employees like myself have left there for better working conditions elsewhere. Before leaving I noticed my co workers clocking out then going back to work for the lunch break. I also noticed them clocking out at the end of the day then going back to finish up the increased work load. I know this is still going on because I am in contact with a few of the original crew that is still there. They also did away with the employee match tax excempt retirement program. They told employees there vacation and time off had to be pre approved while few were. When they were approved they had to wait for months on end. I know because I was forced to wait 3 months and had to pay a higher rate for airfare then I would have had they informed me sooner. These were only a few of the unfair practices I witnessed. Prior to this I was not much of an advocate for employee unions but I am now. I recently heard they fired most of the managers now and have hired less experienced ones to replace them. Once upon a time,I used to love working there. Everyone was helpful and understanding and the patients recieved good care with plenty of help. This organization unfortunately has become a greedy non profit that is very much for profit. A real shame.

                            • 2 votes
                            Reply#72 - Thu Jul 26, 2012 10:48 AM EDT

                            I said a few years back by a corporate management company (In New England) took over. What I should have said was that it was actually just over 4 years ago. Like I said I no longer work there. I grew tired of feeling like I was working an assembly line that never ended. But it was the continued unfairness that kept mounting with heavier workloads and newer rules AND the substandard care the patients ended up with that was really disheartening that really drove me out. I never said a word on my exit interview because they created such an environment of fear that I was worried that would give me a bad reference for future job applications.

                            • 2 votes
                            #72.1 - Thu Jul 26, 2012 11:05 AM EDT
                            Reply

                            here in PA.certain jobs by PA law..mine included..it's up to the employer if they want to pay overtime...and the company i work for doesn't want to so the employee gets screwed...gotta love our overpaid PA gov't crooks...always looking out for the working class.but it's a great state for welfare...but that's another story...

                              Reply#73 - Thu Jul 26, 2012 10:49 AM EDT

                              For a good example of The Future, look at Caterpillar.

                              Caterpillar posted a record profit of $4.9 billion in 2011. Their CEO received a sixty percent increase in pay.

                              Meanwhile, rank-and-file workers are being asked to take a six-year wage and benefit freeze.

                              Guessing if they strike in protest, Caterpillar will simply build a new plant in India or China, and fire them all. If fact, asking for a freeze in the face of record profits actually seems like a calculated plan to get workers pissed off so they are more likely to strike, then they have the excuse they need to close a few plants stateside.

                              So long, middle class, it was nice knowing you.

                              • 2 votes
                              Reply#74 - Thu Jul 26, 2012 10:50 AM EDT

                              GOP retirement plan: work until you die,no retirement for you! Enjoy! This as the CEO lives even better because he doesn't have to pay retirement benefits. And these CEOs are the people Rightwingers support and admire. Like these people they have no soul,many lack a brain too!

                              • 4 votes
                              Reply#75 - Thu Jul 26, 2012 10:50 AM EDT

                              Thank God we don't have unions anymore. If we did, Romney would have to downsize his yacht by twenty-five feet and use that extra cash to pay his employees!

                              • 5 votes
                              Reply#76 - Thu Jul 26, 2012 10:50 AM EDT

                              The problem is there are ten more waiting out there for your job. These illegal foreigners are very hungry for anything willing to work harder and longer . This puts a strain on all of us . Americans are being pushed out by the worker bees. A type of foreign invader like clams and carp finishing us off one at a time.

                                Reply#77 - Thu Jul 26, 2012 10:52 AM EDT

                                Boycott the companies that hire them.

                                • 2 votes
                                #77.1 - Thu Jul 26, 2012 10:57 AM EDT
                                Reply
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