Minnesota Fair Labor Standards Act (MFLSA)

The Fair Labor Standards Act (“FLSA”) is a federal law that, among other things, prohibits employers from failing to pay overtime to its employees and attempting to avoid paying overtime by classifying employees as “salaried” who should, by law, actually be paid for each hour worked.  For such employees, time worked over forty hours must be compensated at time and a half.  Minnesota also has a version of the the FLSA under its own state laws.

On February 18, Madia Law filed a class and collective action lawsuit in federal court against Regency Beauty Institute (a national for-profit cosmetology school) on behalf of employees in Regency’s admissions department who were: (1) initially misclassified as “salaried” employees, (2) were not paid for time worked over forty hours during the misclassification period, and (3) after they were properly classified as “hourly” employees, were required to work off the clock so Regency could avoid paying them overtime wages.

On Friday, Madia Law also filed a motion for conditional class certification, which United States District Court Judge Donovan Frank will hear in early June.  The following includes a summary of the allegations contained in the filings.

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Minnesota Employment Lawyers

Madia Law represented “Laura” – a physician’s assistant who was hired by a medical clinic that found Laura through a recruiting agency.  After hiring Laura, the clinic began making deductions from her checks to cover the “recruitment fee” that it paid the agency to find Laura.  In total, the clinic deducted close to $30,000 from Laura’s wages to recover its recruitment costs.

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One of Minnesota’s largest law firms filed a class action lawsuit against a Minneapolis small business, alleging violations of the Minnesota Fair Labor Standards Act and Payment of Wages Act.  The firm sought over $2,000,000 in damages and refused to settle for anything less, apparently hoping that the costs of litigation would force the small business to settle the case.

No such luck.  Madia Law represented the business and, after a two week jury trial in Hennepin County District Court, the jury ruled against the firm on three out of five claims and awarded a verdict of just over $15,000.

Please note that every case is different, with its own unique facts. Just because Madia Law achieved a certain result in this case does not mean that you will obtain the same result in your case. You should contact Madia Law to discuss your business litigation case in detail and get an accurate assessment of its value.

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