Misclassified Employee Lawsuits arise when an employer intentionally classifies an employer incorrectly, in order to avoid paying overtime wages. Clearly, this practice violates labor laws, is deceptive, and unethical.
When it comes to wage and hour laws, there are two types of employees: Exempt employees (do not need to be paid overtime) and Nonexempt employees (overtime pay required). Exempt employees are usually salaried and are classified as management, professional, administrative, or outside sales. Nonexempt employees include the rest of the employee spectrum, who receive hourly pay and make less than $455 per week, or less than $23,660 per year.
In order to avoid paying overtime, employers will sometimes classify an employee as management, when the employee does not in fact manage anyone. State laws clearly outline what it means to be a manager (for example, in California, to be a manager, an employee must manage at least two people and more than 50% of his or her work must be managerial). Other common misclassifications, which may be grounds for employee misclassification litigation include the claims that construction workers, sales representatives, non-licensed engineers, technical writers, and other workers are professionals.
City Gear LLC has agreed to pay nearly $2 million to settle allegations that the clothing company labeled managers as salary-based to avoid paying overtime, but continued to dock pay when these employees… More
A lot hinges on whether a worker is a full-time employee or an independent contractor. Companies with employees are required to withhold taxes and Social Security, while independent contractors… More
A settlement has finally been reached in a lawsuit filed in CA against Starbucks which alleged that workers were not receiving proper meal breaks.… More
Are oil field workers exempted from overtime pay laws because they fulfill certain Department of Transport qualifications? Superior Energy says yes - but the workers say no, and have now filed a lawsuit to prove it.… More
A former SoulCycle spinning instructor filed a class action lawsuit on May 2, 2013 alleging that the company violated wage and hour laws.… More
Before commenting, please review our comment policy.
A reckless new bill represents an unprecedented threat to consumer rights, essentially gutting class action and mass tort litigation. Congress has tried to ram it through without us noticing. Read more about the implications of this bill, and contact your members of Congress to protect your rights.
ClassAction.org is a group of online professionals (designers, programmers and writers) with years of experience in the legal industry. We work closely with class action and mass tort attorneys across the country and help with investigations into corporate wrongdoing.