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Last week, a class of current and former managers of Steak ‘n Shake, a fast food restaurant, were awarded 2.9 million in lost wages by a Missouri jury who determined that the managers were non-exempt employees under the law and should have been paid overtime.  The case, Clendenen v. Steak N Shake Operations, Inc., is another huge win for misclassified retail managers everywhere.[1] Far too often, employers in various industries classify employees that have “manager” in their title as exempt from overtime compensation without conducting the requisite evaluation of whether the employee’s duties actually meet the requirements for the executive exemption

On December 21, 2018, the Department of Labor, Wage and Hour Division (WHD), issued an Opinion Letter addressing a fairly common wage violation that occurs when employers attempt to get creative with the way that they calculate the hourly rate and overtime rate of employees. In the Opinion Letter, the WHD addressed a situation/question related to whether a specific method of calculating the hourly wage (for a home health aide) was proper under the Fair Labor Standards Act (FLSA).  Apparently, when calculating the weekly pay of home health aide employees, the employer used an hourly pay rate for only those hours

1. There’s strength in numbers. Consumer class-action suits allow a person or small group of people to sue a company on behalf of a larger group with similar claims. The cases, which often allege fraud or product defects, usually end in settlement instead of going to trial. For example, AT&T paid a $45 million settlement in response to consumer complaints that they had received unsolicited automated cell-phone calls. Automakers Hyundai and Kia have agreed to pay $395 million following allegations that they inflated fuel-economy data. Cases involving consumer privacy, such as the 2013 Target data breach, have become even more common. 2. But