Impetus for Reform: Growth of Litigation
{"Image DocumentName": "Impetus for Reform: Growth of Litigation", "Image ImageDescription": "The FLSA at the University of Michigan. January Impetus for Reform: Growth of Litigation. Collective actions in the wage-hour area now exceed employment discrimination class actions. Misclassification damages = [(Hours > 40 x 1.5 Regular Rate) x (2 or 3 years) x (2 for Liquidate Damages)] x (Number of Employees) + Attorney\u2019s Fees + Court Costs. At the University of Michigan damages are paid at the department level. The U.S. Department of Labor s (DOL) primary objective in revising the white collar exemptions from the minimum wage and overtime rules under the Fair Labor Standards Act (FLSA) was to make it easier for employees and employers to understand their rights and obligations under the law. There have been many cases concerning FLSA litigation in the past two years. As a result, employers have paid millions of dollars in jury awards and settlements. Wal-Mart. A federal jury found that Wal-Mart violated employment laws by requiring employees to punch out and continue to work without pay. The practice clearly violates the FLSA, which requires employers to pay employees one-and-one-half times their regular rate of pay for any hours worked over 40. Employees involved in the lawsuit also alleged that Wal-Mart deleted hours from time cards and harassed employees who claimed overtime. This lawsuit, decided by a federal jury in Oregon, is only one of many against the retailer. Other cases have already been decided for millions of dollars (some reports say  50 million to 69,000 plaintiffs), and almost 40 additional lawsuits for back pay against the company are pending. UPS (United Parcel Service) settled back pay issues with part-time supervisors in California for an estimated  18 million. UPS had classified the workers as exempt under the FLSA, but they were really nonexempt employees. Starbucks Corporation paid  18 million to settle claims made by more than 1,000 managers and assistant managers that they were incorrectly classified. A jury awarded  90 million in back pay to 2,400 Farmer\u2019s Insurance adjusters (currently on appeal). SBC Pacific Bell had two settlements: one for  34 million with 1,500 engineers, another for  27.8 million in 1997 with sales support managers. Rite-Aid Corporation settled  25 million with 3,000 managers and assistant managers. Bank of America had a settlement of  22 million with 6,000 personal bankers. CSK Auto, Inc. had a settlement of  11 million with 1,500 store managers. Taco Bell settled  9 million with 3,000 managers and assistants. Radio Shack settled a case and agreed to pay  29.9 million to 1,300 current and former managers. In another suit, Eckerd Corporation (pharmacy) paid  8 million to settle a suit brought by pharmacists. \u00a9Copyright 2004 The Regents of the University of Michigan.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}