Are Burger King Delivery Drivers Reimbursed Fairly?

Federal law, along with the laws of many states, requires that companies who pay their delivery drivers at or near the minimum wage must fully reimburse those delivery drivers for their gas and other driving-related expenses.  Unfortunately, too many companies try to make extra profit by systematically under-reimbursing their delivery drivers.  As a result, Meiselman, Denlea, Packman, Carton & Eberz P.C. has filed suit against a Pizza Hut franchisee for failing to reimburse delivery drivers

We recently learned that Burger King is getting into the delivery business.  If Burger King fully reimburses their delivery drivers, Burger King delivery is a great idea.  However, if Burger King follows the lead of many pizza chains and under-reimburses delivery drivers, delivery drivers have a right to be fully compensated.  If you are a delivery driver and you believe you are being under-reimbursed, please contact us to discuss your legal options.

Tips Belong To Waiters, Not Restaurants

New York law requires that tips at restaurants go directly to wait staff, and New York law explicitly forbids restaurants from taking a percentage of the tip left for a waiter or waitress.  Nonetheless, some restaurants disregard the law and pocket a share of the tip.

Not only is such behavior unlawful, it amounts to theft from the wait staff and from the customer.  The waiter or waitress is often counting on the money to make ends meet.  And the customer intends to give a tip to his waiter or waitress, not to give extra money to the restaurant.

If you work as wait staff and your employer is taking a percentage of your tips, your employer may be violating your employment rights.  Pelase contact us to discuss your legal options.

MDPCE Files Suit On Behalf Of Pizza Hut Delivery Drivers

On October 25, Meiselman, Denlea, Packman, Carton & Eberz P.C. filed suit against CFL Pizza, a Florida Pizza Hut franchisee on behalf of Pizza Hut delivery driver, Curtis Hanna, and thousands of other Pizza Hut delivery drivers in Florida.

Although Florida law -- along with federal law and the law of many other states -- requires that Pizza Hut fully reimburse its delivery drivers for car-related expenses, Pizza Hut systematically under-reimburses its drivers.   As a result, many Pizza Hut delivery drivers are effectively making less than the minimum wage.

The lawsuit filed by Meiselman, Denlea, Packman, Carton & Eberz seeks money for Pizza Hut delivery drivers to make up for Pizza Hut's systematic under-reimbursement.  The lawsuit also seeks to change Pizza Hut's policy going forward, so that all Pizza Hut delivery drivers in the State of Florida will be properly reimbursed for their car-related expenses.

If you are a delivery driver and you believe your employer may not be properly reimbursing you for car-related expenses, please contact us to discuss your legal options. 

Are Delivery Drivers Being Fairly Compensated?

Meiselman, Denlea, Packman, Carton & Eberz P.C. is currently investigating potential class action lawsuits on behalf of delivery drivers for Quiznos, Dominos, Pizza Hut, Papa Johns and other restaurants or businesses. Under federal and state law, delivery drivers must be properly compensated for gas and wear and tear on their vehicles. This compensation must be high enough above the minimum wage to fully offset expenses. A federal court has held that fair compensation for wear and tear may be an extra $4.20 per hour, meaning that many tipped delivery drivers must be paid a total of at least $6.33 per hour and – in some circumstances – over $12 an hour.

However, many restaurants do not fully compensate their drivers, in violation of the law. For example, Pizza Hut may only be paying delivery drivers in some large, metropolitan areas $4.25 an hour, and many other restaurants – including Quiznos – may also be in violation of the minimum wage laws. Delivery drivers who are underpaid may be entitled to back-pay for the time they were underpaid, higher wages going forward, and other damages.

If you, or someone you know, served as a delivery driver for Quiznos, Dominos, Pizza Hut, Papa Johns or another restaurant or business, you may have been denied fair wages. Please contact us as soon as possible to discuss your legal options.
 

AT&T Wireless Faces Class Action Lawsuit By Home-Based Employees

A federal class action lawsuit has been filed against AT&T Wireless alleging that the carrier has violated the rights of at-home virtual call center employees under the California Labor Code.  According to the class action complaint, AT&T has hired at-home call center employees to provide billing and technical support for AT&T customers.  The complaint alleges that AT&T illegally mislabeled these employees as independent contractors in order to avoid workers' compensation costs, to avoid paying state and federal taxes, and to circumvent wage and hour requirements in violation of the California employment laws.  For example, state minimum wage rules, lunch break requirements, and overtime laws protect employees but not independent contractors.  The lawsuit says that even though these workers were labeled as "independent contractors", they are required to perform work at the times dictated by AT&T and in the manner directed by AT&T such that these workers are properly labeled as employees and are entitled to all the protections afforded to employees which are not available to independent contractors.  Most states have laws protecting employees which are similar to California's  laws at issue in this lawsuit.

If you work under similar circumstances and your employer labels you as an "independent contractor" rather than as an "employee", please contact Meiselman, Denlea, Packman, Carton & Eberz P.C. to discuss your legal rights.

Nationwide Class Action Alleges SuperMedia, Inc. Denied Hundreds Of Employees Overtime Compensation

On July 1, 2011, a class action lawsuit was filed in the U.S. District Court for the Northern District of Texas, on behalf of current and former inside sales employees of SuperMedia, Inc., to recover unpaid overtime wages for a three year period. The Complaint alleges that SuperMedia failed to comply with the Fair Labor Standards Act (“FLSA”) by failing to include commissions earned by plaintiffs and the putative class members in their regular rate of pay, shortchanging the amount of overtime owed to them under the FLSA. 

The FLSA generally requires that an employee who works more than 40 hours a week be compensated for the hours worked over 40 at a rate of not less than one and one-half times the regular rate of pay. Plaintiffs were paid a salary or an hourly rate and were also paid commissions. SuperMedia failed to include the commissions in the “regular rate of pay” when calculating overtime pay due to its employees. Given the number of employees and the 3 year time period, SuperMedia potentially denied its employees millions of dollars in overtime compensation.

 If you or someone you know believes your employer has failed to properly compensate you for overtime worked or any other type of compensation, please contact us to discuss your legal rights. 

Job Search Firms

In August, 2009, we posted an article about several job search firms that prey on recently unemployed people, charging them thousands of dollars for empty promises of superior employment search services that in the long run amount to very little and definitely nothing worth the thousands of dollars they cost. Since then, we have received several additional complaints regarding this issue.

Complaints are mainly about the marketing tactics of SET Personal Marketing of Englewood, Colorado and the related entity, ERI Personal Marketing, which shares the same web content with SET. Both find resumes of newly unemployed job searchers who are looking for six-figure salaries. The theory is that these people not long out-of-work may have available funds to pay the high, $3,000 to $10,000 service fees that SET seeks. SET’s marketing materials and website clothe the services they offer in slick, high-powered sounding terms and brag about having developed a $35 million database to support people’s job search.

Reports have been that the initial contacts from SET or ERI take a soft approach with offers of free help with the customer’s resume, without ever mentioning the cost of the fee; they also confuse job searchers as to whether the services are of a headhunter who would earn a fee from the employer, not the employee. Indeed, we are told that an SET Senior Consultant lied in response to a direct inquiry from a consumer whether the larger group of services to be offered were being offered on a fee for service basis. Then, the hard sell began – when the customer balked at SET’s more than $3,000 fee, SET offered to lower the price and provide more of its services for free or at a reduced rate. When asked what website should be consulted for information about SET, the "Senior Consultant" suspiciously responded that the "one they are using now" is www.seniorexecutivecareerpartners.com. A review of that website reveals no reference anywhere to the actual cost of the services being offered.

Consumers who have paid for these scams have reported that the services provided are not at all as advertised and have little value. For instance, short-form resumes that were prepared merely took a person’s existing resume, scrambled the wording around, which resulted in something relatively incomprehensible and replete with uncorrected errors. In one case, a resume was revised by the job search firm and thereafter the person was contacted by another of the same company’s representative who offered to revise the resume that had just been revised by his colleague.

Additionally, the actual job searches performed are unhelpful and outdated, and seem to be appropriate for only limited areas of employment. Moreover, the job search materials for which a high price was paid are said to be publicly available for free through existing online job search engines.

The people who have contacted us thus far, were smart enough to ask questions and research SET and ERI before signing a contract and paying thousands. One West Coast based IT executive we spoke to was pressured by an SET Senior Consultant until he threatened to contact the Attorney General and the sponsors of this blog for advice. He has never heard back from SET. Another consumer told us she asked SET for 10 satisfied customers. SET told her that the people who had gotten jobs would not want to be contacted.

If you have signed a contract with SET or another similar job search firm and are dissatisfied and believe you have been a victim of misleading sales tactics and were made false promises, please contact us to discuss your legal options.

Is Your Employer Violating The Law By Not Paying Gratuities Earned By You?

A few months ago we published a blog post about employees who are paid by the hour -- particularly low wage workers -- and who are often cheated by their employers.  We pointed out that hourly workers are routinely denied proper overtime pay and are often paid less than minimum wage according to a newly released study based on a survey of workers in New York, Los Angeles and Chicago.

But what about workers who are not being paid their tips, even though their employers are charging customers a mandatory gratuity for various services?  Unfortunately, many employees do not realize that they are entitled to receive all, or a significant portion, of gratuities charged by employers to their customers.

Indeed, there are millions of workers in the USA that rely on tips for most of their income, and there are well over two million businesses that rely on tipped employees.  According to recent statistics from the U.S. Department of Labor, food and beverage service-related workers held 6.5 million jobs in 2000 alone.  The U.S. Department of Labor estimates in a 2001 study that tips and gratuities may account for well over $5 billion per year being left on plates and tip trays and financed on credit cards.

But let's face facts.  Relying on customers' tips for your income is tough.  The average customer doesn't realize how difficult and hard the average waiter, waitress, hair dresser, concierge, cab driver, maitre de or bartender works for their money.  Dealing with and satisfying the general public is one of the most demanding jobs around.  Many, if not most, tipped employees have a tough time making ends meet.

So if your employer is withholding gratuities that you’ve earned, you may have a case under The Fair Labor Standards Act ("FLSA").  The Act mandates that gratuities earned by an employee but collected by an employer must be turned over to the hard working employee whom earned it.  If your employer is not doing so, you may have a basis to file a class action suit to recoup the tips earned by you and all other workers at your work site.  Employers who do not manage and properly account for the gratuities earned by their employees and who do not properly pay their employees tips that they have collected on behalf of their workers may in fact be violating the law.

 If you believe that your employer is withholding gratuities that you’ve earned, please contact us to discuss your legal options.

Back-Dating Options And 401k Plans: Do Employees Have A Right To Sue?

If you’re an employee with a 401k plan that has in it shares in the company you work for, and the executives of your company back-date their stock options -- thereby decreasing the value of your company’s shares and the value of your 401k plan -- do you have a right to sue for violations of the Employee Retirement Income Security Act (“ERISA”)?  Apparently you do, and many employees in this identical situation have done so.

Backdating takes place when executives change the award date of previously granted stock options in shares of their own company so that their securities are worth more -- sometimes tens of millions of dollars more.  For example, Monster Worldwide has at last put an end to a prolonged stock-option-backdating scandal that cost the company tens of millions of dollars and resulted in the criminal convictions of two former senior officials.  The New York based company agreed to pay $4.3 million to a group of employees who held Monster stock in their 401(k) plans.  These employees sued alleging violations of ERISA and contending they had bought shares in their 401k plans while their bosses -- Monster Worldwide executives -- made false disclosures about Monster's financial condition and illegally lined their pockets with back-dated stock option grants.

This boardroom version of creative writing took place at dozens of companies, including at Grand Theft Auto publisher Take-Two Interactive Software, Comverse Technology and Cablevision Systems, as well as many other companies based in Silicon Valley.

The practice seems to have been especially pervasive at Monster, where backdating options apparently went on for nearly a decade before being uncovered in 2006.  The Securities and Exchange Commission (“SEC”) filed civil fraud charges against the company's former chief executive, president, general counsel and controller.   In fact, Monster's former president, James Treacy, was convicted on criminal fraud charges and was sentenced to two years in prison.  And Monster's former general counsel, Myron Olesnykckyj, pleaded guilty to criminal fraud charges in 2007 and is scheduled to be sentenced in February, 2010.

If you are an employee with a 401k plan that has in it shares of your own company, and know or believe that executives in your company have back-dated their stock options, please contact us to discuss your legal options.

Are You Being Under-Paid Or Having Your Salary Docked In Violation Of The Fair Labor Standards Act?

Employees who are paid by the hour, particularly low wage workers, are often cheated by their employers.  Hourly workers are routinely denied proper overtime pay and are often paid less than minimum wage according to a newly released study based on a survey of workers in New York, Los Angeles and Chicago.

In surveying 4,387 workers in various industries, including child care, retail and apparel manufacturing, the researchers found that the typical worker had lost $51 the previous week through wage violations, which translates into an average loss of 15% in pay.  According to the New York Times, the study -- the most comprehensive examination of wage-law violations in a decade -- also found that 68% of the workers interviewed had experienced at least one pay-related violation in the previous week.  Moreover, the study found that 26% of the workers surveyed had been paid less than the minimum wage, that 1 in 7 had worked off the clock, and that 76% of those that worked overtime were not paid their proper overtime compensation.

Annette Bernhardt, an author of the study and policy co-director of the National Employment Law Project, stated that, “When unscrupulous employers break the law, they’re robbing families of money to put food on the table, they’re robbing communities of spending power and they’re robbing governments of vital tax revenues.”

This study comes only ten months after a federal judge in Manhattan awarded $4.6 million in back pay and damages to 36 deliverymen at two Saigon Grill restaurants for violating state and federal minimum wage and overtime laws. In those cases, the Chinese immigrants were required to work 11 to 13 hours a day, six days a week, without proper compensation for overtime. Even more egregious, the company would take illegal deductions out of their salaries for various “infractions,” such as allowing the restaurant door to slam or for failing to log a delivery.

If you believe that you’ve been underpaid by your employer, or that your pay was improperly “docked” by your employer based upon alleged infractions of company policy, please contact us to discuss your legal options.