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FLSA | SEONewsWire.net http://www.seonewswire.net Search Engine Optimized News for Business Fri, 01 Aug 2014 11:40:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.8 Texas District Court approves employment lawsuit settlement that extinguishes claims under state law http://www.seonewswire.net/2014/08/texas-district-court-approves-employment-lawsuit-settlement-that-extinguishes-claims-under-state-law/ Fri, 01 Aug 2014 11:40:35 +0000 http://www.seonewswire.net/2014/08/texas-district-court-approves-employment-lawsuit-settlement-that-extinguishes-claims-under-state-law/ A federal court has ruled that a settlement of a collective action lawsuit filed under the Fair Labor Standards Act (FLSA) may include a release of any plaintiffs’ rights to overtime pay under state law. Wells Fargo was the defendant

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A federal court has ruled that a settlement of a collective action lawsuit filed under the Fair Labor Standards Act (FLSA) may include a release of any plaintiffs’ rights to overtime pay under state law.
Wells Fargo was the defendant in five different overtime pay lawsuits filed by former mortgage consultants, loan consultants and loan originators. The lawsuits were consolidated in multidistrict litigation in the District Court for the Southern District of Texas. Two of the lawsuits claimed nationwide collective status under the FLSA, while another brought claims under Washington state law only. The national claims were successfully mediated, and more than 4,000 employees opted in to the settlement. The settlement released all future claims to unpaid overtime (including state law claims).

The named plaintiffs in the claim under Washington state law, however, did not opt in and filed objections. The court denied their objections, along with a motion for reconsideration, holding that the plaintiffs lacked standing because they were not opt-in members of the collectives. The court also held that even if the plaintiffs had standing, they had not shown that the settlement was substantively unreasonable or unfair. 

The court noted that potentially valuable legal rights were given up in the settlement, and that plaintiffs were entitled to accept a certain sum in exchange for the sacrifice of uncertain potential future recovery. The court, therefore, granted the settlement final approval.

Gregory D. Jordan is an employment lawyer. To learn more, visit http://www.theaustintriallawyer.com or call 512-419-0684.

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Employees Sue Restaurant Franchisee Over Unpaid Overtime http://www.seonewswire.net/2014/06/employees-sue-restaurant-franchisee-over-unpaid-overtime/ Thu, 19 Jun 2014 01:56:00 +0000 http://www.seonewswire.net/2014/06/employees-sue-restaurant-franchisee-over-unpaid-overtime/ Five former restaurant workers filed a federal lawsuit against Marble Slab Creamery and Great American Cookies, San Antonio franchisees for Subway, alleging that they were not paid for overtime work and other work. Collective action certification has been sought under

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Five former restaurant workers filed a federal lawsuit against Marble Slab Creamery and Great American Cookies, San Antonio franchisees for Subway, alleging that they were not paid for overtime work and other work.

Collective action certification has been sought under the Fair Labor Standards Act (FLSA) for the lawsuit on behalf of about 125 workers currently or formerly employed by a number of defendants. It is possible that the collective action could be expanded.

Wessam “Sammie” Aldeeb, the defendant franchisee, asserts that he has not underpaid employees and that his success depends on keeping his employees happy. Aldeeb operates at least eight franchise locations in San Antonio and Boerne, according to the lawsuit. The franchisers were not named in the suit.

An attorney for the plaintiffs has asserted that wage and hour violations are common in the restaurant industry. One of the plaintiffs has claimed that she worked many overtime hours for which she was not paid. Another attorney for the plaintiffs has argued that it is unfair and illegal competition for some businesses to keep labor costs down by violating the FLSA, earning profits at the expense of law-abiding competitors and of their own employees.

The lawsuit seeks certification as a collective action under the FLSA. Such collective actions share some characteristics with class action lawsuits, with notable differences. If employees are “similarly situated” to the plaintiffs in the lawsuit by being subject to a common policy or design, then they may “opt in” to the lawsuit. Employees who do not opt in may maintain the right to file a subsequent private action.

Gregory D. Jordan is an employment lawyer. To learn more, visit http://www.theaustintriallawyer.com or call 512-419-0684.

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