June 2010 Archives

June 23, 2010

Senator Harkin Aims to "Level the Playing Field" to Protect Workers And Businesses from Employee Misclassification

According to U.S. Senator Tom Harkin, (D-IA) who recently discussed the issue of employee misclassification at the U.S. Senate HELP Committee hearing, over 10.3 million workers in this country are incorrectly labeled as independent contractors--which amounts to around 7.3 percent of the nation's workforce. Harkin stated that the scope of the employee misclassification problem is "staggering." The U.S. Department of Labor (DOL) supported this statement, as a recent study found that as many as 30 percent of this country's businesses misclassify employees as independent contractors.

As our Southern California Employment Attorneys discussed in a recent blog, employee misclassification is a frequent and growing problem--as misclassified workers don't receive the same protections under our laws, like minimum wage and overtime payments, meal periods and rest breaks, tax responsibilities, safety and health laws, workers' compensation, antidiscrimination protections, along with other federal and state employment laws and regulations.

Harkin claimed that employee misclassification is also costing the state and federal governments billions of dollars in unpaid revenues, and hurting businesses who are trying to comply with the law. An employer that misclassifies workers could outbid honest and lawful employers by as much as 30 percent.

Harkin reported that in Iowa's first year of operating the Iowa misclassification program, the state uncovered 182 employers who had misclassified 1,565 workers--that totaled more than $27 million in total unreported wages, $1 million in unemployment taxes due, and unemployment penalties and interest amounting to $340,000. He claims that if state and federal agencies help to solve the problem, they can recover millions of dollars from employers who aren't paying their fair share to workers and to the individual states.

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June 21, 2010

Supreme Court Sides with Employers on Texting Privacy Rules in the Workplace

Our California Labor and Employment Lawyers have been following the Supreme Court's ruling last week in an electronic workplace privacy issue case where an Ontario, California police officer claimed that his privacy rights in the workplace were violated, after a supervisor read text messages that he had sent using his work-issued pager.

This is reportedly the first Supreme Court decision considering privacy rights of employees who send text messages in the workplace--an important case, as the decision affects more than 20 million local, state, and federal government employees who spend time conducting business on cell phones or sending text messages and emails on devices provided by their employers. The issue in this case was whether the Fourth Amendment's ban on "unreasonable searches" can limit a public employer's right to search.

In the case, Sergeant Jeff Quon, a SWAT team officer, received a pager from the City of Ontario, to be used for sending work text messages. The city paid for the text and pager plan, which included a 25,000 characters per month limit, as well the wireless service fees. Any texts after this would accrue overage fees.

Quon claims that he was told he could use the pager for personal messages as long as he covered the cost--so when he started exceeding the text message limits, he personally paid the overage fees and charges. But after a few months of receiving overage bills, Quon's boss Chief Lloyd Scharf reportedly decided to order transcripts of the text messages and perform an "audit" to see whether the character limit should be raised, and to see if Quon was wasting time texting personal messages when he should have been working.

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June 19, 2010

Labor Secretary Investigates Child Labor Law Violations in Farming Industry

In a recent blog, our Santa Ana Labor and Employment Attorneys discussed the announcement by the U.S. Department of Labor (DOL) this week that employers who illegally hire children and violate child labor rules and regulations, will now face stronger penalties.

According to the New York Times, the Obama administration has embarked on the campaign of enforcing child labor rules and regulations to keep farmers who hire children and underpay workers from breaking the law.

Labor Secretary Hilda L. Solis, whose father was an immigrant farm worker, claims that enforcing labor rules and laws on farms is a priority in the current administration, and that they will be hiring over 250 labor investigators and will raise the wage and hour violation fines to reflect the priority. Congress is also currently considering whether laws that permit 12-year-olds to engage in summer farm work with almost no limits need to be rewritten.

The Care Act, put forth by Lucille Roybal-Allard (D-CA) is a proposal to ban the hiring of 12- and 13-year-olds, and to limit the hours of 14- and 15-year-olds to keep teenagers away from hazardous jobs. Reportedly 91 representatives have co-sponsored the act, and Iowa Senator Tom Harkin claims that he plans to introduce a similar bill in the Senate.

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June 17, 2010

Department of Labor Cracks Down on Illegal Employment of Children

In a blog from earlier this week, our attorneys at HOWARD | NASSIRI, PC discussed the Department of Labor's (DOL) announcement of a grant, supporting and training women in non-traditional occupations.

The DOL made headline news again this week, announcing that employers who illegally employ children as workers will now face stronger penalties--as the department is cracking down on employers who violate child labor rules and regulations.

In a statement by Hilda L. Solis, Secretary of Labor, young workers are a priority of the state department. Solis claims that work involving children must be age appropriate, must not interfere with school, and must be conducted in a healthy and safe work environment.

According to current child labor provisions under federal Fair Labor Standards Act (FLSA):

• Workers under the age of 18 are prohibited from working in hazardous, nonagricultural occupations.

• Individuals who are under the age of 16 are legally able to work only limited after school hours.

• Individuals who are age 14 and 15 may also not work before 7am in the morning, or after 7pm in the evening, unless it's from June 1 through Labor Day, in which they can work until 9pm.

• The types of jobs and hours that 14- and 15-year-olds can work are also restricted by FLSA laws.

• With agricultural work, children under the age of 12 may be employed with consent from their parents, but only on small farms that are not subject to federal minimum wage requirements.

• Individual workers who are 12- or 13-years-old may also be employed on a farm with parental permission, or can also be hired to work on the same farm as a parent.

• On a general rule, no farm worker under the age of 16 can perform hazardous work, or engage in employment during school hours.

Under the new, tougher penalty structure of the DOL, employers who employ 12 and 13-year-olds illegally will face a $6,000 penalty per violation. The penalty will be at least $8,000 per violation If the child is under the age of 12. Under certain conditions, illegally employing child laborers under the age of 14 could be raised to $11,000 per violation.

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June 16, 2010

Hotel Workers Accuse Los Angeles Airport Hilton of Violating Living Wage Law

In a recent wage and hour lawsuit filed against the Hilton Los Angeles (LAX) Airport Hotel, two workers in Los Angeles, California claim that the hotel hired numbers of low wage workers through a subcontractor, in an attempt to illegally dodge the Los Angeles city laws--requiring that lower wage, temporary airport-area hotel workers receive a "living wage."

The proposed class action lawsuit was reportedly filed by two housekeepers in Los Angeles Superior Court, on behalf of over 150 former and current workers for the Hilton hotel, and claim that Hilton officials have been using Norma's Corp., an employment agency to hire and pay the employees less than the city's living wage, and violate their wage and hour rights. The employees hired through the agency were reportedly paid less than minimum wage, with no access to health insurance.

According to the Daily Breeze, in 2006, Los Angeles City Council reportedly adopted the living wage ordinance for the hotels that are inside the Century Corridor. Hotels were told by the city that they would be responsible for paying the living wage of $10.64, unless they were able to reach a collective agreement with their employees.

The Hilton reportedly tried to overturn the Los Angeles law during which time other hotels in the airport area agreed to comply with the living wage ordinance. The suit is reportedly bringing attention to hotels who are gaining profit by taking advantage of low-wage workers by violating the Los Angeles living wage ordinance. The workers are seeing unspecified damages and back pay.

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June 15, 2010

DOL Announces $1.8M in Grants to Support Female Workers

As Santa Ana Labor and Employment Attorneys, we have been following the U.S. Department of Labor's (DOL) announcement this week, that a total of $1.8 million in funding, as part of the Women in Apprenticeship and Nontraditional Occupations Grant program (WANTO)--was given to six organizations in California, New York, Illinois, Ohio, Maryland, and Pennsylvania, to encourage women to pursue career opportunities in non-traditional fields.

In these grant funded projects, women will be trained by community-based organizations to enter careers in many non-traditional areas--like manufacturing and the construction industry. Women will be given educational opportunities to train and prepare for different and non-traditional occupational roles--including carpenter, plumber, welder, construction worker, electrician, cement-mason, machinist, and painter or plasterer, among others. Female workers will also have to opportunity to go to programs geared toward networking and mentoring, and receive advice on job placement, in an environment that supports and advances women in non-traditional careers.

The DOL's Women's Bureau is dedicated to ensure opportunities for American women who aim to achieve their potential, with equal opportunity in the workplace. The WB and the Employment and Training Administration's (ETA) Office of Apprentice (OA) work together to administer the WANTO grant program--with the main purpose of increasing the number of women entering and remaining in apprenticeships having to do with non-traditional occupations. With grant funding, community-based organizations are able to provide technical assistance to help employers and labor unions place women in the right occupational apprenticeships.

Sara Manzano-Diaz, the director of the DOL's Women's Bureau (WB) claims that as women make up a critical part of this country's workforce, these grants recognize that there is a need for more talented women to enter occupations in lucrative and non-traditions industries. The grants will reportedly also provide female workers with important training opportunities and connections with established Registered Apprenticeship programs, to prepare them for long and successful careers, that are free from employment bias or discrimination based on sex.

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June 11, 2010

Charter Agrees to Settle Class Action Wage and Hour Lawsuit

Our Riverside, California Employment Attorneys have been following a recent wage and hour class-action lawsuit settlement--where Charter Communications has agreed to compensate California field technicians and technicians in other states $18 million, after being accused of failing to pay the technicians overtime as well as other wages earned.

According to the lawsuit, in 2008, a field technician at a Charter Communication office in Janesville, sued the company in a federal collection action, to fight for overtime and unpaid wage compensation for around 8,000 former and current Charter employees.

This class action case claims that Charter violated the federal Fair Labor Standards Act (FLSA) by neglecting to pay field technicians assigned with Charter vehicles for a number of tasks surrounding the vehicles--loading and unloading the Charter vehicle, paying for time spent traveling, for before work activities, stocking and collecting equipment, vehicle cleaning, reconciling inventories of equipment, and completing logs that document work activity. The class action lawsuit reportedly involves field technicians who had a Charter vehicle assigned to them, and were responsible for keeping the Charter vehicle at home overnight, anytime after March 15, 2005.

The wage and hour class action lawsuit settlement includes former and current employees for Charter from California, Missouri, Michigan, Minnesota, Nevada, Washington, Nebraska along with other states, during specified class periods.

Charter has denied any liability under the settlement, and claims that they have a policy in place that pays its hourly employees for all time worked.

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June 10, 2010

Wal-Mart Warned of Gender Discrimination Possibilities Before Lawsuit

In a recent blog, our California employment attorneys reported on the class-action gender discrimination lawsuit against Wal-Mart that has been going on since 2001, and is said to be the largest sex discrimination lawsuit in history. In an April ruling, the group of employees was given the go-ahead to move forward in the class action lawsuit--and sue Wal-Mart for a systematic pattern of discrimination based on gender in compensation and promotion.

According to a recent New York Times article, in 1995, the retailer hired a powerful law firm to study the possibility of such legal battles. The firm reportedly found gender disparities in compensation and promotion throughout the Wal-Mart and Sam's Club stores.

This confidential report performed by Akin Gump Strauss Hauer & Feld, found that female employees of Wal-Mart made less money than male employees in many categories of employment. Salaried male employees reportedly earned 19% more money than women. One statistic found that men were reportedly five and a half times more likely than women to receive a promotion into a managerial position that was salaried.

The report warned the company of the possibility of gender discrimination, after finding huge differences in job assignments and roles due to sex. In one finding, fifty-five percent of women were more likely to start as a cashiers, as opposed to 12 percent of men. Twenty-nine percent of men started in receiving roles that usually paid twenty percent more than the cashier's jobs--as opposed to seven percent of female employees.

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June 9, 2010

Starbucks Settles with California Teen in Sexual Harassment Lawsuit

In a recent Southern California sexual harassment lawsuit settlement that our attorneys at Howard Nassiri, PC discussed in a blog, Starbucks has settled a lawsuit with a 20-year old former barista from Orange County, California, who claims that the coffee giant neglected to protect her from sexual demands made by the store manager, when she worked there as a teenager.

The former Starbucks barista, Kati Moore, claimed in her lawsuit that while working as a barista for the company at the age of 16, she was subjected to constant sexual harassment and discrimination by her then 24-year old supervisor. Moore claimed that Starbucks failed to protect her from the discrimination and sexual harassment, especially because other Starbucks supervisors reportedly knew about the sexual violations happening, but didn't come forward.

After finding out about the relationship, Moore's mother contacted prosecutors. Moore's manager claimed that he did not know that Moore was 16, and pleaded guilty of illegal sex with a minor--a felony charge that led to four months in prison.

Starbucks claims to have a strict policy against sexual harassment, as well as employee relationships. After the release of the "20/20" news program investigating Katie Moore's case, and teen sexual harassment in the workplace, Starbucks reportedly stated that because the employees violated company policy by concealing their relationship, the company was confident the case would be resolved, in finding that Starbucks was not at fault.

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June 8, 2010

Employee Who Claims Citibank Fired Her for Being Too "Hot" Sues for Gender Discrimination

In a highly publicized employment news story that has swept the nation over this past week, former Citibank worker Debrahlee Lorenzana was featured in a Village Voice article, revealing the details of her lawsuit against Citibank for gender discrimination because of the company's reaction to her work attire and looks. After Lorenzana was reportedly fired last year due to poor work performance, she slapped Citibank with a discrimination lawsuit, claiming that her bosses thought she was too "hot."

Lorenzana claims in her lawsuit that two male bosses told her to stop wearing tight turtlenecks, pencil skirts, heels or fitted business suits, and fashionable clothing that accentuated her buxom figure--that reportedly distracted her male co-workers and supervisors. The 33-year old single mother claims that she always dressed in a fashionable and respectable manner, and that other female colleagues wore clothing that was more revealing, yet they were not asked to change their wardrobe.

In the Village Voice article, complete with a 32 page spread of photographs of Lorenzana in tight and body hugging clothing, Lorenzana claims that she was punished because her shapely figure attracted too much attention, and was "too much" for her male coworkers and supervisors to "bear" looking at. Lorenzana is accusing Citibank of discrimination based on gender, creating a hostile work environment, and retaliation.

According to the Village Voice, because Lorenzana signed a mandatory arbitration clause before as a condition of employment, the case will never go to trial in front of a jury or judge. An arbitrator will reportedly decide the outcome of the case.

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June 7, 2010

Workers Sue Bank of America in Nationwide Class-Action Wage and Hour Lawsuit

California workers from Bank of America Corporation, along with other hourly workers from Florida, Texas, Washington, and Kansas, filed a nationwide class-action wage and hour lawsuit against the company on Friday, in federal court.

According to Reuters, Bank of America, one of the country's largest employers, is being accused of violating the Fair Labor Standards Act (FLSA) as well as other state labor laws over the past three years, by requiring bank tellers and other hourly workers at retail branches and call centers to work overtime, without paying them for their hours worked over a 40 hour work week, and for all straight time worked.

Bank of America is also being accused of failing to provide legal meal and rest breaks, requiring workers to work through unpaid breaks and failing to compensate employees who have been terminated for wages earned and vacation time that had been earned.

CBS4 reports that workers were also given compensatory time off or told not to report more than 40 hours of work on their time cards. Employees claim that the bank even modified hours recorded by tellers, to eliminate overtime hours accrued.

This lawsuit consolidates twelve lawsuits that have been filed on behalf of employees in different states across the country, and seeks nationwide class-action status. The lawyer for the plaintiffs claims that this case could cover over 180,000 employees and could lead to "hundreds of millions" of dollars in recovery. The workers are seeking punitive and compensatory damages, other remedies, and are asking Bank of America to stop the alleged illegal conduct.

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June 4, 2010

U.S. Department of Labor's Agreement with Tyson Foods on "Donning and Doffing" Lawsuit Influences Future Wage and Hour Rights

In a recent blog, our California Employment Attorneys discussed the wage and hour rights of poultry processing workers, and what work activities are considered compensable under the federal Fair Labor Standards Act (FSLA)--focusing on "donning and doffing" and the time it takes workers to put on and take off their protective work gear at the start and end of each workday.

The U.S. Department of Labor (DOL) announced yesterday, that Tyson Foods, Inc., one of the world's largest processors of chicken, pork and beef, has agreed to a nationwide injunction in a 'donning and doffing' lawsuit, that will require the company to pay the workers of the poultry processing plant for all the hours that they work--a critical step in the DOL's efforts to protect the wage and hour rights of workers and influence the way workers are paid in the poultry processing industry in the future.

According to the DOL, Tyson agreed to resolve the 2002 lawsuit, which was filed by the DOL after an investigation by the department's Wage and Hour Division at Tyson's poultry plant in Blountsville, Alabama, found that Tyson violated federal law by not paying workers overtime pay to compensate them for the time it took to put on and take off protective and sanitary clothing before and after their shifts.

This agreement ensures that Tyson poultry processing workers will be paid for all of the "donning and doffing" time spent before and after work shifts. The workers also must be compensated for all of the time spent walking and waiting that occurs during the workday. Tyson is obligated to keep precise and accurate records of the workers' time.

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June 3, 2010

California Labor Commissioner Sues Florida Contractors for Overtime Wage Violations

A California wage and hour lawsuit has recently been filed by California State Labor Commissioner Angela Bradstreet, against Florida contractors--for violating state wage and hour laws, and taking advantage of California employees.

According to a Mercury News report, Bradstreet is suing the Florida contactor ZMG Construction and two unlicensed Florida subcontractors, Lake's Construction and EQ Master Construction, for violating California wage and hour laws while working on two renovation projects that took place in Pacifica, California.

The California Department of Industrial Relations (DIR) Division of Labor Standards Enforcement (DLSE) reportedly began investigating the company after California workers filed wage complaints with the state after not receiving compensation for work performed from January to October of last year. The DLSE found that the unlicensed subcontractors neglected to compensate thirty California workers over $121,000 in overtime and minimum wage payments.

Bradstreet is seeking around $400,000 in damages from the contractors, as well as back wages and unpaid overtime. The suit also asks for over $275,000 for attorney's fees, damages, and penalties.

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June 1, 2010

Polo Ralph Lauren Employees Reach $4 Million Preliminary Settlement in California Off the Clock Lawsuit

In recent California wage and hour class action news, a federal judge has preliminarily approved a $4 million settlement that could bring an end a lawsuit between 6,700 California employees and Polo Ralph Lauren--where Polo Ralph Lauren is being accused of violating California wage and hour laws, and denying proper compensation to their employees.

In the class action wage and hour lawsuit, brought by the former Polo Ralph Lauren employees, the high-end retailer is accused of demanding that the employees stay after work for an off the clock bag check that could last around 15-30 minutes, with no compensation for their time--a violation of California labor law. In the suit, the employees accuse the store managers of locking the doors at the end of a work day and forcing each employee to endure a bag check, that according to the attorney for the class-action suit, might be appropriate for retail loss-prevention in the store, but only if employees are compensated for their time.

The retail company is also being accused of denying the employees legally mandated rest breaks for every four hours worked. According to the lead plaintiff in the case, Ann Otsuka, managers reportedly harassed employees who attempted to take their breaks, threatening them that taking a break would make them fall behind on their sales and commissions. The lawsuit also claims that Polo Ralph Lauren used fraud to deny the employees from overtime compensation, as well as deducting future commission earnings if they did not make the standard of minimum commission required by the company.

The final hearing to determine the approval of the $4 Million settlement is scheduled for August 2010.

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