Wage & Hour Lawsuits Increased by 10 Percent Last Year
By Anne Bucher
When people are employed, they rightfully expect to be paid for the work that they perform. However, many workers discover that their employers use unscrupulous tactics to reduce their payment. These tactics may be illegal under federal wage and hour law. Many workers have taken action and filed federal wage and hour lawsuits against their employers, alleging that they have been denied pay that they should be entitled to receive.
Federal Wage and Hour Lawsuits Continue to Rise
The number of federal wage and hour lawsuits that were filed in the past year has increased by 10 percent to more than 7,500 — a record high number. These lawsuits have continued to increase each year for the last five years.
These cases have been filed under the Fair Labor Standards Act (FLSA), a law that was enacted to protect employees from unfair business practices. The FLSA established the 40-hour workweek, overtime pay and minimum wage requirements. Most claims that are filed under the FLSA fall within three categories. These categories include:
- Salaried employees who have been denied overtime pay
- Hourly employees who claim they were not paid for all of the hours they worked
- Restaurant workers who claim they are owed extra money under the “tip credit” provision of the FLSA
Federal wage and hour complaints occur throughout a variety of industries, including food services, hospitality, health care, retail, transportation, financial services, technology and telecommunications. Since 2000, the number of class action lawsuits that allege wage and hour violations have increased 400 percent. With the increasing use of social media, more and more complainants have become aware of their rights under the FLSA and are choosing to take legal action to get the compensation that they deserve.
Class Action Wage and Hour Lawsuit Filed against RadioShack
In one recent FLSA class action lawsuit, RadioShack has been accused of failing to pay its workers for overtime.
David Verderame, a former RadioShack manager, has sued the company on behalf of all RadioShack employees in Pennsylvania. He claims the company failed to pay overtime wages since 2010 and that RadioShack’s method of calculating overtime violated Pennsylvania’s minimum wage law.
Verderame alleges in the class action lawsuit that RadioShack paid workers half the overtime rate that they were eligible to receive. RadioShack relies on a payment method known as the “fluctuating workweek,” which is allowed in certain circumstances under the FLSA. RadioShack is facing similar wage and hour lawsuits in federal courts in California, New York and New Jersey.
Learn about Your Legal Rights
If your employer failed to pay you all of the money you earned, you may have legal grounds to file a class action lawsuit. To learn more about your legal rights, visit the Wage & Hour, Unpaid Overtime Class Action Lawsuit Investigation. When you submit information about your wage and hour complaint, a wage and hour attorney will conduct a free case evaluation to determine whether you have a legitimate legal claim. You could receive back pay and penalties from your current or former employer.
Updated May 13th, 2013
All employment related class action and lawsuit news updates are listed in the Employment and Labor section of Top Class Actions
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