If you’re in a position where your employer isn’t paying you the wages or commissions that you’re due, I’m sorry.  That’s frustrating, and wrong.  You probably depend on your wages and commissions to make a living and bills don’t take a break because your employer won’t pay.

The good news is that Minnesota has strong laws to protect Minnesota employees and simplify the process of getting paid what you’re owed – and then some.  Here’s a few tips that will help you start the process at the very least and hopefully, get what you’re owed without having to hire a lawyer.

1.  Figure out what you’re owed.

 

The first thing you need to do is figure out how much your employer owes you in wages and/or commissions.  If  you’re an hourly employee and your employer hasn’t paid you for all the hours that you worked, at least one part of this analysis should be pretty straightforward: multiply the number of hours that you worked (but haven’t been paid for) by your hourly rate – this will give you the amount in straight wages you’re owed.

But your calculations don’t end there.  You should also consider the following questions:

• Was there overtime that you worked but weren’t paid for? You rate overtime pay (time and half) for all hours worked over 40 in a workweek.

 

• Did your employer ever make you work off the clock? That is: were you required to perform work while not clocked in?  If yes, you’re entitled to be paid for that time under the Fair Labor Standards Act and Minnesota Fair Labor Standards Act.

 

• Did your employer pay employees for banked sick time, PTO, or vacation time? What does it say in your employee handbook about unused vacation, PTO, and sick time? If there’s a practice or policy of paying for that time, then that also constitutes wages owed to you.

 

If you’re a commissioned employee, look to your sales/employment contract to determine how much you’re owed in commissions.

 

2. Figure out if your employer took improper deductions from your paychecks.

 

Employers sometimes withhold paychecks – or make deductions from paychecks (especially final paychecks) – if they believe the employee owes them money.  Sometimes employers will deduct money for broken equipment, training, uniforms, lost or stolen property, unmet performance or sales goals, or other debts it claims that the employee owes.  Minnesota law generally prohibits these deductions with the exception of very special circumstances.

Unless you voluntarily authorized your employer – in writing – to make deductions from your paycheck after the supposed debt or loss was incurred, your employer is not allowed to make that deduction and it’s illegal.

Look at your paychecks and figure out if your employer made any deductions and if yes, for what.  Your employer probably owes you that money, too.

 

3. Send your employer a letter or email demanding payment of your wages.

 

After you determine how much you’re owed (see steps 1 and 2), send your employer a written demand for your wages – via email or letter.  Make sure to save a copy of your demand letter for your records.

Here’s a sample written request that you can cut and paste (and fill in the relevant fields, like “date” and “address”) into an email or letter that you’ll send to your Human Resources department:

 

Date:  _____________

 

To:      Human Resources, Attention [NAME]

[YOUR EMPLOYER’S COMPANY NAME]

[COMPANY ADDRESS]

 

From:  [YOUR NAME and ADDRESS]

 

Regarding:      Demand for payment of wages

 

Pursuant to Minn. Stat. 181, I request that you pay me the wages that I’m owed.  I am owed the following amounts:

[$ AMOUNT] in straight hourly pay;

[$ AMOUNT] in overtime;

[S AMOUNT] in banked PTO, sick, and vacation time; and

[$ AMOUNT] in unpaid commissions. [Adjust these amounts and categories as necessary after you go through Steps 1 and 2].

Please immediately send a check for the full amount to: [YOUR ADDRESS].

 

Sincerely,

[YOUR NAME]

 

4. Calculate penalties if your employer doesn’t immediately pay you wages owed.

 

If your employer doesn’t pay you after you send your written demand, then Minnesota law imposes penalties on your employer that will be owed to you.  For example, if your employer hasn’t paid you your last paycheck within 24 hours of your written demand, then the penalty is equal to your average daily earnings for each day the employer is late, up to 15 days.  In other words, if your employer doesn’t pay you for 15 days after your written demand, then your employer owes you your last paycheck plus 15 days of wages.

Moreover, there are double-damages penalties under state and federal law if your employer owes you overtime pay.  Likewise, if your employer made unlawful deductions, your employer owes you not just the amount of the deduction, but that amount multiplied by 2.

Minnesota law also requires your employer to pay your attorney fees and costs in obtaining your wages and commissions.

 

5. Contact a Minnesota unpaid wages employment lawyer.

 

Contact a Minnesota employment lawyer for a free consultation about your case.  They can advise you about your case and your options.  If they take your case, they’ll work on a contingency fee, so they won’t get paid unless they recover for you.  And – as stated above – for many situations – your employer will need to pay your legal fees.

 

First of all – if you’ve just been terminated or laid off from your job and you’re looking for answers – we’re sorry that you’re going through this experience. In our country, we often identify with our jobs as part of who we are: losing a job can feel like losing part of your identity. Especially if you’ve given years of your life to a company, built relationships and friendships with your coworkers, and enjoy the work, losing a job can be devastating. On top of that, you’ve likely got more immediate concerns about how you’re going to pay the bills after losing your job and continue to support yourself and your family. We’re truly and sincerely sorry that you’re dealing with this. And I hope this article can help provide some answers.

1. Stabilize your income through unemployment benefits.

The most pressing thing many people need to do is make sure that they continue to have income during this period. Minnesota unemployment insurance is a great first step. In Minnesota, the standard to receive unemployment compensation is lenient toward employees – the State generally wants to make sure that people have a safety net during periods of unemployment.
Unless you were terminated for “misconduct,” you’re probably entitled to unemployment compensation. Misconduct does not include: substandard performance, failure to meet performance expectations, excessive tardiness, or other things like that – if you were terminated for substandard performance or failure to meet performance expectations, you’re still entitled to unemployment payments. Instead, “misconduct” usually means things like theft, assault, or some other kind of “serious violation” of the behavior an employer can reasonably expect.

So – the bottom line is that you’re probably eligible for unemployment benefits. You can apply for those benefits at this link. Learn more about Minnesota unemployment benefits here.

2. Don’t sign a severance agreement and release until you talk to a Minnesota employment lawyer.

Many employers will present employees that they fire or lay off with a “separation agreement” or “severance agreement.” Usually, the agreement will provide some amount of money as a severance payment – often as little as 2 – 4 weeks’ worth of wages – in exchange for the employee releasing the employer from any and all kinds of legal claims, including: wrongful termination, sexual harassment, discrimination, failure to accommodate, unpaid wages, and unpaid overtime.

Please don’t sign such an agreement until you’ve gotten a free consultation with an employment lawyer in Minnesota. It makes sense to have a professional evaluate your situation – for free – to determine if you have any potential claims against your employer. If you have such claims, then the amount of your severance payment can be negotiated much higher than your employer initially offered.

But you don’t know if you have any employment claims unless you talk to an employment lawyer. So please, don’t sign away your rights without talking to a lawyer first.

 

3. Write down your thoughts on why you believe that you were terminated.

Your employer probably gave you the reasons it says justified your termination. Some common reasons that Minnesota employers give are: failure to meet performance expectations; substandard performance; and decrease in business.

Do you agree with the reasons provided by your employer? That is: do you think that your employer is telling the truth as to why it fired you? If yes, fine. If not, sit down and think about what you believe the real reasons are that your employer terminated you – no matter what reasons your employer is saying. Here are some important things to think about:

•  Did you ever make a complaint about discrimination or harassment (including sexual harassment) in the workplace? If yes, when? Who did you make the complaint to? Who was it about? Do you believe that played a role in your termination? If yes, why do you believe that? This could form the basis of a wrongful termination or workplace retaliation claim under Title VII or the Minnesota Human Rights Act.

 

• Do you believe that your race, age, gender, pregnancy, disability, or sexual orientation was a factor in your termination? If yes, why do you believe that? This could be the basis of a wrongful termination or discrimination claim under Title VII or the Minnesota Human Rights Act.

 

•  Did you ever make a report of unlawful activity at work? Did you say that you believed the company or a supervisor or another employee was breaking the law? Did you think any of the company’s practices were unlawful? Who did you make the report to? When? Do you believe that played a role in your termination? Why do you think that? This could form the basis for a wrongful termination claim under the Minnesota Whistleblower Act.

 

•  Did you request medical leave at work? Do you think that was a factor in your termination? Why do you believe that? This could form the basis for a wrongful termination or interference claim under the Family and Medical Leave Act.

 

• Were you injured at work? Did you request workers compensation benefits?  Were you terminated shortly after your injury? This could form the basis for a workers compensation retaliation claim.

You may also want to think about:

• Were you ever sexually harassed at work? By whom? When?

• Did you work overtime? Were you paid time and a half for all overtime that you worked? Were you paid for all of your hours worked? Did you get meal and rest breaks? You may have claims under the Fair Labor Standards Act, Minnesota Fair Labor Standards Act, or Minnesota Payment of Wages Act.

Write down your thoughts to whichever of these questions you answered “yes” to or think are relevant. Your notes will help a Minneapolis employment lawyer analyze your claims during a free consultation.

 

4. Make a written request for your personnel file.

Minnesota law requires your employer to give you a copy of your personnel file upon written request by you. You should immediately request the file – in writing – after you termination so that you can review it and so that a Minnesota employment lawyer can review it. Here’s a sample written request that you can cut and paste (and fill in the relevant fields, like “date” and “address”) into an email or letter that you’ll send to your Human Resources department:

Date: _____________

To: Human Resources, Attention [NAME]
[YOUR EMPLOYER’S COMPANY NAME]
[COMPANY ADDRESS]

From: [YOUR NAME and ADDRESS]

Regarding: Request for Personnel File

Pursuant to Minn. Stat. 181.961, I request that you send me a complete and accurate copy of my personnel file. Please send the file to:
[YOUR ADDRESS].

Sincerely,
[YOUR NAME]

Make sure to save a copy of your email or letter request for your records.

 

5. Make a written request for the reason for your termination within 15 days of your termination.

Minnesota law also mandates that employers provide you the reason for your termination – in writing – if you make a written request for it within 15 days of your termination. This is important because it locks the employer into its story and makes it very difficult for them to change later when your employment lawyer proves their reason was false. Request this so that your employment lawyer can look at it during your free consultation. Here’s a sample written request that you can cut and paste (and fill in the relevant fields, like “date” and “address”) into an email or letter that you send to your Human Resources department or supervisor:

Date: _____________

To: Human Resources, Attention [NAME]
[YOUR EMPLOYER’S COMPANY NAME]
[COMPANY ADDRESS]

From: [YOUR NAME and ADDRESS]

Regarding: Request for Reason for Termination

Pursuant to Minn. Stat. 181.933, I request that you provide me the reason for my termination. Please send it to:
[YOUR ADDRESS].

Sincerely,
[YOUR NAME]

Make sure to save a copy of your email or letter request for your records.

 

Conclusion

No matter how you feel right now, please remember that you’re an amazing person who has a special gift to contribute to this world. Some of the greatest achievements and success stories belong to people who were fired by employers too dense to realize their gifts, including: Steve Jobs (of Apple Computers), Oprah Winfrey (Oprah!), JK Rowling (Harry Potter books), Walt Disney, and Thomas Edison. You’re in great company. Maybe this termination will serve you by allowing to pursue your passions and build something wonderful beyond your wildest dreams. Don’t let this get you down. One book you should think about reading is “Awaken the Giant Within”, by Tony Robbins.

Also, remember that you have rights. A host of federal and state laws protect you as an employee. Please take the steps above and schedule a free consultation with a Minnesota employment lawyer.

Workplace Fairness Law in Minnesota – the Basics.

Here’s a quick primer on workplace fairness in Minnesota.  Unfortunately, there’s no state or federal law mandating “fairness” at work.  There’s no law saying that employers need to hire good bosses or kind employees, or that employers need to make good business decisions.  So the bad news is that your employer doesn’t have to be “fair” to you.

But the good news is that there are Minnesota and federal laws that protect employees.  Specifically, Minnesota law prohibits discrimination in the workplace, including sexual harassment and hostile work environment.  As a Minnesota employee, you’re also protected from retaliation for whistle-blowing on activity that you believe is illegal or fraudulent.  Minnesota employment law also guarantees employees minimum wage and overtime pay.

Wrongful Termination in Minnesota

Minnesota is an “at-will”employment state. That means that your employer can fire you for any reason or no reason at all – even a stupid, incorrect, unfair, or unethical reason – provided that it’s not an illegal reason.

Employers can – and often do – make mistakes or bad business decisions when they terminate employees. Even if an employer’s actions are unfair, unethical, or bad business, the employer hasn’t broken the law unless they make an employment decision such as termination for an illegal reason. Sometimes, employment lawyers refer to these claims as “wrongful termination” claims. We mainly use “wrongful termination” as shorthand for clients – most of the illegal reasons for termination that form the basis for a lawsuit are discrimination, retaliation, or whistleblowing.

There are several illegal reasons for termination:

• The first illegal reason for termination is discrimination on the basis of race, age, sex, disability, or sexual orientation. Both Minnesota state law (through the Minnesota Human Rights Act) and federal law (through Title VII, the Americans with Disabilities Act, and the Age Discrimination in Employment Act) prohibit employment discrimination on the basis of inherent and arbitrary criteria like race, age, gender, disability, or sexual orientation.
• The second unlawful and wrongful reason for termination is retaliation or reprisal by an employer against an employee for making a complaint or report of discrimination. The Minnesota Human Rights Act and Title VII both prevent employers from retaliating against employees for making a report of unlawful discrimination – either against themselves or other employees.
• The third illegal reason for termination is retaliation for whistleblowing. Both federal law and state law protect whistleblower employees from suffering retaliation at their jobs for reporting conduct that they believe to be unlawful.
• The federal government allows certain employees up to 90 days in a calendar year for medical leave for themselves or to care for family members through the Family and Medical Leave Act. An illegal reason for termination is if an employer retaliates against an employee for exercising his or her FMLA rights.
• Minnesota protects its injured employees by preventing employers from retaliating against employees who get injured on the job and seek workers compensation benefits. Workers compensation retaliation is illegal. It is illegal for employers to terminate employees just because the employee was injured and sought workers compensation.

Hostile Work Environment Claims in Minneapolis

Even if you haven’t been terminated, you may still have an employment claim against your employer for hostile work environment. This claim is frequently misunderstood, though. It’s not enough to bring a lawsuit to state that your boss or employer is mean to you, doesn’t treat you right, or doesn’t do things the way you think they should be done. Rather, in order to have a legal claim, the hostile work environment must be based on discrimination.

For example, sexual harassment is a common type of hostile work environment claim. Basically, an employee alleges that her supervisors have made her work environment hostile by sexual comments, innuendo, propositions, or even grabbing and assault. Race, age, disability, and sexual orientation discrimination can all form the basis for a hostile work environment claim, but employment lawyers must have the ability to prove that the harassment at work was on account of the employees, race, gender, sex, age, disability, or sexual orientation. For better or worse, there is no law mandating kindness by employers to employees or among peers. Hostile work environment claims must be based on some form of unlawful discrimination.

Minnesota Minimum Wage, Overtime, and Unlawful Deductions Claims

Both Minnesota and the United States mandate that employers pay employees minimum wage and pay time and a half for overtime work. Minnesota also prohibits unlawful deductions from employees’ paychecks by employers. The Fair Labor Standards Act and Minnesota Fair Labor Standards Act prohibit retaliation by employers against employees for making reports of unlawful wage and hour practices, such as failing to properly pay minimum wage or time and a half for overtime.

The mandatory minimum wage is different under state and federal law. The state mandated minimum wage is currently $7.75 per hour and the federal minimum wage is $7.25 per hour. That means that Minnesota businesses must pay Minnesota employees the higher of the two – the state minimum wage of $7.75 per hour. As part of this, all work done by employees for employers must be “on the clock.” If companies require employees to do work “off the clock” – before, during, or after their shifts – then the employees likely have a minimum wage claim against the employer.

Also, under federal law, all hours worked per week over 40 by an employee are considered overtime and must be paid at time and a half. Under Minnesota state law, all hours worked over 48 by an employee are considered overtime and must be paid at time and a half. Minnesota companies must abide by both sets of laws: as a practical matter, that means that Minnesota employers must pay employees time and a half for all hours worked in a week over 40. If a company fails to do this, the employee likely has an overtime claim against the employer.

Minnesota and federal plaintiff employment lawyers frequently bring these claims – for minimum wage, overtime, or unlawful deductions – as collective actions or class actions on behalf of all employees affected by the wrongful conduct. Oftentimes, employers short many employees on their paychecks, require off the clock work from many employees, or don’t properly pay overtime or minimum wage to entire groups of employees. Employment lawyers who represent employees then can bring claims on behalf of the entire group of employees to get compensation for all.

Proving Minnesota Discrimination, Wrongful Termination, Hostile Work Environment, or Wage and Hour Claims

Wrongful Termination and Discrimination Claims in Minnesota

Very rarely will an employer admit that it terminated an employee for an illegal, discriminatory reason. Usually, even if the employer actually discriminated on the basis of age, race, disability, gender, or sexual orientation, the employer will make up and offer a different, non-discriminatory reason for termination. For example, the employer might claim that it terminated the employee based on poor performance. In order to prevail on a wrongful termination or discrimination claim, you must prove that the reason offered by the employer is a pretextual reason that is just being said so that the employer can avoid having to say the actual, illegal reason for termination.

We’ve got a couple ways that we use to prove pretext on behalf of employees. First, you can demonstrate that the reason given by the employer is just factually wrong. So, for example, if the employer claims that it terminated an employee for poor performance, but actually gave the employee high performance reviews for a number of years and has no written records of any discipline or counseling of the employee, then we’ve created a fact question for a jury regarding whether the reason given by the employer is the real reason for termination, or just a pretextual reason designed to mask unlawful discrimination.

Second, we can prove that the reason given by the employer isn’t the real reason for termination because it wasn’t equally applied to similarly situated employees. So, if the employer claims that it terminated someone for poor performance, but the employee’s peers actually had equal or worse performance reviews than the terminated employee – or documented performance problems that that employee didn’t have – than we’ve created a fact issue regarding whether the employer’s stated reason for termination is the actual reason, or just a pretextual reason designed to mask unlawful discrimination.

Minneapolis Hostile Work Environment Claims 

We prove these claims by basically documenting the maltreatment that employees have received. A couple things are very important here. First, we need to show that the hostile work environment was on account of your age, race, sex, disability, or sexual orientation. So employees can testify or offer other evidence about comments, drawings, emails, or other events that demonstrate that the maltreatment was motivated by discrimination.

Second, the employee needs to show that he or she took steps to notify management of the problem, but management took no action. For example, if an employee believes that her coworkers are sexually harassing her by making sexual comments or grabbing her or whatever, she needs to notify a supervisor as soon as possible. The employer is not liable for the acts of rank and file employees. So just because her coworkers are sexually harassing her, the employer is not automatically liable. The employer is liable, though, if it knows about the sexual harassment and doesn’t take corrective action to protect the employee. So if the employee notified a supervisor about the sexual harassment, and the supervisor did nothing, and the harassment continued, then the employee has a strong case for hostile work environment sexual harassment against the employer.

Minimum Wage, Overtime, and Unlawful Deductions Claims in Minneapolis and St. Paul.

In some ways, these claims are easier to prove than discrimination claims because we don’t need to prove an employer’s intent – we don’t need to show what was going on inside an employer’s head. The only thing we need to prove is that an employee worked a certain number of hours that he or she wasn’t properly paid for, or that unlawful deductions were taken from their checks.

The first thing that we’ll review are your paychecks and your timesheets, to see if they match. Sometimes, they may match but an employer has required you to work off the clock, so the off the clock time isn’t documented. Do your best to keep your own notes or log of the time that you work off the clock, so that we can recreate those hours when seeking damages.

However, ultimately, an employee’s testimony alone is sufficient evidence regarding the amount of hours worked off the clock if an employer has failed to keep accurate records of time worked.

We’re Minnesota Employment Lawyers Who Focus on Plaintiffs’ Employment, Wrongful Termination, Harassment, Discrimination, Retaliation, and Wage and Hour Cases

We represent employees across Minnesota in wrongful termination, discrimination, retaliation,sexual harassment, FMLA, minimum wage and overtime, disability, workers compensation retaliation, and hostile work environment cases. We’ve been honored to take on – and beat – some of the largest employers in the country that broke the law.

You probably have many questions right now, like:

• I’ve been out of work for months now and am having trouble finding a job. Who will cover my lost wages?
• I’ve suffered emotional distress as a result of my employer’s harassment and wrongful termination. Can I get the medical care and compensation that I need?
• My employer wants me to sign a severance agreement that includes a release of all of employment claims. Should I sign it?

These are just some of the questions that workers and employees have after suffering a wrongful termination by their employer. Our employment lawyers can help you answer these questions and will aggressively advocate and litigate on your behalf, so that you can start the process of getting your life back to normal.

You May Be Entitled to Lost Wages, Emotional Distress Compensation, and Punitive Damages

For wrongful termination and discrimination claims, you may be entitled to back pay and front pay damages, emotional distress compensation, treble damages under the Minnesota Human Rights Act, punitive damages under both the Minnesota Human Rights Act and Title VII, and your attorney fees and costs. You may even be entitled to get your job back.

For hostile work environment claims, state and federal law allow you to recover any lost wages, emotional distress damages, treble damages (that means three times the amount of actual damages), punitive damages under both the Minnesota Human Rights Act and Title VII, and your attorney fees and hard costs.

For workers compensation retaliation actions, Minnesota allows plaintiffs to recover back and front pay damages, punitive damages, and attorney fees and hard costs.

In minimum wage, overtime, and unlawful deductions actions brought under the Minnesota Fair Labor Standards Act or Fair Labor Standards Act, employees may recover up to 3 years worth of unpaid wages or overtime pay, plus an equal amount as liquidated damages, in addition to attorney fees and costs.

Under the Family Medical Leave Act, plaintiff employees may recover lostback pay and front pay, plus an email amount as liquidated damages, in addition to your attorney fees and costs.

Contact Our Minnesota Workplace Fairness Lawyers for a Free Consultation.

You must act quickly when it comes to employment claims. If you wait, there may be strict statutes of limitation that will bar you from filing any claim at all against your employer. Call Madia Law today to discuss your case.

All consultations are free. During your consultation, we’ll discuss the strengths and weaknesses of your case, the potential value of your case (e.g. how much your case is worth), and the best way to proceed. There’s some information that we’ll need when you call, so if possible, please have it handy, including: who did you work for what did you do how long did you work there how much did you earn when were you terminated what was the reason given by the employer for your termination and why do you think the termination was unlawful or wrongful. If you have this information handy, it will allow us to proceed to the heart of your case very quickly and give you good legal advice.

The process for a free consultation with our employment lawyers is pretty simple. First, call our firm. You’ll talk to a clerk for about 5-10 minutes. They’ll get some basic information about you and your case.

About 3 or 4 hours later, you’ll get a call from us. If you’ve got a case that’s a little outside our wheelhouse, then we’ll will call you and give you a referral for an attorney that we think is better suited to handle your case. Our number one goal is to make sure you get the best representation possible for your particular matter – if that’s not us, we’ll tell you immediately and get you to someone else that we trust.

If we think that we can help you, then someone will call you and set an appointment for you to talk to one of our employment lawyers. We’ll call you at time that works for you and discuss your case and give you our honest assessment of its strengths, weaknesses, and value. We’ll then set a time where you can come to our office and meet your employment lawyer personally – at that time, we’ll discuss your case in more detail, sign a contingency fee retainer agreement, and talk about the process of moving forward with your case.

When you come in to meet your employment lawyer, please bring all relevant documents that you want us to look at, including: pay-stubs personnel file (if you have it) employment handbook (if you have it) any letters from your employer, including your termination letter any text messages or emails that you think are important and any other documents that you think might be helpful.

What if my employer lied to me or made false statements to get me to take a job?

If you relied on your employer’s representations and either moved somewhere within Minnesota to take the job – or moved from out of the state to Minnesota to take the job – and the employer’s representations were false, then you’ve got a potential lawsuit against the company for fraudulent inducement: false statements as inducement to entering employment.

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In a win for employees, the U.S. Supreme Court on Monday refused to review an award to a class of plaintiffs against Wal-Mart Stores, Inc for denial of rest breaks to hundreds of thousands of employees.

The lawsuit resulted in a $188 million award against Wal-Mart. The company asked the Supreme Court to review the ruling, arguing that the lower court ruling came from an unconstitutional “trial by formula.”

 

Approximately one year ago, the Mayor of Minneapolis, Mayor Betsy Hodges, unveiled her plan to address sick leave, scheduling, and wage theft issues in Minneapolis. In December, a 19-member group called the Workplace Regulations Partnership Group began meeting with each other and members of the public to construct an ordinance that would require employers located in Minneapolis to pay employees for days the employee is required to miss work either because the employee is sick or a member of the employee’s family is sick. The Group is made up of workers, organized labor representatives, employers, and representatives of business groups. Since December, the Group has held 14 listening sessions – sessions designed to get input from local businessowners and employees.

Research conducted by the Group has shown that “high numbers of low-wage workers – particularly women and people of color – lack access to paid leave and often face tough choices between coming to work sick or losing their job.” Erin Golden, “Draft plan for Mpls. Sick-leave ordinance would cover all but the smallest businesses”, MinnPost (March 9, 2016); see also Findings & Recommendations, Workplace Regulations Partnership Group, Presented to the Committee of the Whole at 6 (March 9, 2012) (“Estimates suggest that between one-third and one-half of Minneapolis residents do not have access to paid sick time, with those residents more likely to be women, [people] of color, and concentrated among lower-wage earners, working less than full-time.”) Further, the Group has looked at cities that have implemented similar ordinances and found that such ordinances have resulted “in modest public health improvement and a reduction in ‘presenteeism’ (coming to work sick).”  “Draft plan for Mpls. Sick-leave ordinance” at 7.

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Retail giant Wal-Mart is being sued by a group of former employee pharmacists who say they were required to work outside the stores but were not paid for that work. In an amended complaint filed a few weeks ago, the former employees argue that they were required to study and take immunization training at home but were not paid for that time.

“Wal-Mart pressured pharmacists to attend and complete the training course in a variety of ways that relayed to plaintiffs and putative class members it was not voluntary,” their amended complaint said.  (more…)

The most recent in a string of such lawsuits, a former Marc Jacobs intern has initiated a class action lawsuit against the fashion designer for failing to pay interns proper minimum wage and overtime wage rates.  Plaintiff Linney Warren sued Marc Jacobs alleging that she often worked 70-hour weeks in May, fetching coffee, moving raw materials between studios, sorting fabrics, fixing patterns, and sewing. Other companies recently hit with similar lawsuits include Fox Entertainment, Lions Gate Entertainment, Coach, and more.

Altogether failing to pay interns who are not receiving legitimate academic or vocational training is an unfair wage practice.  Similarly, failing to give paid interns appropriate minimum wage rates and overtime wage rates violates the Fair Labor Standards Act and comparable state legislation.  In addition to exposing employers to liability, these practices take advantage of young people who don’t fully understand wage and hour law and who are working hard in the infancy of their careers.

 

Historically, owners and managers of strip clubs have adhered to a business model that classifies exotic dancers (often called “strippers”) as independent contractors rather than employees.  By classifying dancers as independent contractors, employers are able to reap the financial benefits of having dancers work for them (and, as a result, turning a profit) while simultaneously avoiding having to pay the dancers for their work, paying into social security, and potentially paying unemployment insurance and workers compensation.  This business model, however, may be quickly eroding.

In November, 2012, a federal court approved a roughly $13 million settlement in a nationwide class-action lawsuit against 16 strip clubs which were classifying their dancers as independent contractors.  Stephanie Hoops, Spearmint Rhino Exotic Dancers Settle Suit For Nearly $13 Million, The Huffington Post (November 11, 2012 1:32 PM) https://www.huffingtonpost.com/2012/11/14/spearmint-rhino-exotic-dancers-settle-suit_n_2128458.html.  Moreover, recent court decisions have nearly unanimously ruled that exotic dancers are employees, not independent contractors.  See Hart v. Rick’s Cabaret International, Inc., 2013 WL 4822199 (2013); Clincy v. Galardi South Enterprises, Inc., 808 F.Supp.2d 1326 (2011); Thompson v. Linda And A, Inc. 779 F.Supp.2d 139 (2011).  That notwithstanding, there are still many strip clubs which continue to classify their dancers as independent contractors. (more…)

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.