Articles Posted in Tip Pool Violations

Minor league baseball players may be getting the short end of the baseball bat when it comes to their wages. Ongoing litigation on behalf of 34 former minor league players against Major League Baseball (MLB), all 30 big-league teams, and others indicates that players may be getting overworked and underpaid.

The antitrust exemption held by MLB is the conflict’s primary point of contention. Regulations provided by the Fair Labor Standards Act (FLSA) do not apply to MLB in the same way as they do to other major organizations, thanks to this unique antitrust exemption. For many players, this fosters pay that averages below hourly minimum wage—a low bar that has already failed to keep up with decades of inflation.

If you are worried that your employer is paying you below minimum wage or is somehow otherwise violating the FLSA, consider the following:

Although many people may suggest that Major League Baseball (MLB) players possibly make too much money, the opposite is true for their Minor League counterparts. In the wake of a growing lawsuit against MLB, research has come to light indicating that many minor league players earn below the hourly minimum wage of $7.25 per hour.

However, the MLB’s antitrust exemption — which is unique to the MLB and no other major sports organizations — virtually exempts it from standards of the Fair Labor Standards Act (FLSA).

An MLB spokesperson made a statement in October on the situation:

For several years, our New York wage and hour lawyers have been on the vanguard of a movement agitating for better treatment and fairer pay for restaurant workers. New reports about recent claims against McDonald’s suggest that discrimination, harassment, and wage and hour violations may be even more widespread in the industry than critics have suspected.

The fast food industry is an enormous job engine, currently responsible for 9% of private sector jobs in the U.S., employing 5.5 million women and 5.1 million men. A recent Mother Jones piece investigating the restaurant industry, based in part on information from the Economic Policy Institute, revealed some shocking statistics:

  • Median wage for all forms of payment (tip, tipshare, and flat rate) has stalled at $10/hour for the last 15 years. Non-restaurant U.S. workers, meanwhile, earn a median wage of $18.

The Obama administration’s recent push for stronger labor laws has sparked an intense national conversation over what constitutes fair treatment and fair pay for workers.

Federal agencies, supported by the administration, recently brought a major case against McDonald’s, which we discussed in detail in a previous blog post. The fast-food giant has been charged with labor-law violations and coercive tactics to silence employees. Critics claim executives exploited and extended labor elections to deny union formation among McDonald’s employees. Some dubious company practices, like monitoring employees’ email accounts for hints of union organizations in off-hours, have now stopped. The case has the potential to influence labor regulations concerning pay, overtime, and healthcare.

The suit against McDonald’s is just one piece of important news, though. Promising new technological advances may soon streamline the processes by which workers can enforce and collect back pay. Additionally, legislation proposed by the National Labor Relations Board (NLRB) may improve the way employees who work over 40 hours a week are compensated. If such legislation passes, more workers will qualify for time-and-a-half pay for overtime.

Wal-Mart recently made headlines by instituting a wave of minimum wage increases in several states. In 2014 alone, retail workers in 13 states saw a bump in base wages. As the nation’s largest private employer, Wal-Mart’s wage increases will impact more than 1,400 stores and likely lead to cascading effects through local economies.

On one hand, Wal-Mart’s moves are clearly in the right direction. On the other hand, critics suggest that the company has not done enough to increase wages. When private employers pay workers less than a living wage, workers often must turn to government assistance. Taxpayers then pick up this bill, essentially subsidizing low-paying private employers.

Wal-Mart says it hopes to simplify its payment systems. It plans to change its pay structure by lumping cashiers, cart pushers, and maintenance workers into one payment class. However, the retailer will also narrow the gap between low-paying and high-paying positions. One Wal-Mart manager explained the company’s reasoning: “Essentially… wage compression at the upper level of the hourly associate is going to help absorb that cost of the wage increase at the lower level.”

New York employment lawyers, restaurant owners, and employees throughout the country are watching with baited breath as pivotal litigation unfolds against McDonald’s. The civil rights suits filed against the fast food giant stem from employee complaints over workplace bullying, which claimants allege took place after they requested higher pay and better working conditions. The allegations include discrimination, threats, and reduced hours for broaching the subject of better wages and working conditions.

The media has called the suit the “fight for $15,” a reference to a push from labor advocates to increase the minimum wage to $15/hour. Currently, the minimum wage in New York is $8.75. While New York’s rate is technically above the federal standard for minimum wage by 55 cents, critics say this $8.75 figure is woefully inadequate to cover living expenses in New York City, even for those who work 40-hour weeks.

The fast food corporation is attempting to pawn the claim off on franchisee owners, but it appears that intense litigation may be headed for McDonald’s corporate office. That litigation is expected to begin in March, and case watchers believe it will likely lead to a long legal process.

Many citizens seek to file class action lawsuits every year in response to perceived wrongdoings that have racial, religious, or gender related elements. Here are 3 tips every person must keep in mind before he or she sets out to file a class action suit.

1. Know What a Class Action Lawsuit Is

A class action suit is loosely defined as a lawsuit filed by a group of people who believe their rights were violated in some way. During this type of suit, a judge will decide the rights of several people at once. For example, if all the African-American and Hispanic tenants in an apartment building believe a landlord has treated them unfairly by because they are non-white, they might file a class-action suit. The judge’s responsibility would be to decide what the whole group is entitled to from the landlord under existing laws.

Our New York wage and hour attorneys are not ones to shy away from fights over tip pool violations. Critics have called our own Maimon Kirschenbaum the “scourge” of restaurant owners for his relentless advocacy on behalf of waiters, busboys and other tipped employees.

But where do you draw the line when it comes to “standing up” against unfair treatment of tipped employees?

A viral news item out of nearby Philadelphia has provoked an impassioned conversation in the blogosphere about what exactly constitutes a “fair” tip and about how and when “unfair tipping” should be punished.

As the U.S. labor world digests the news of the passage of measures in six states (and two cities in California) that have elevated the minimum wage, workers and their families probably are wondering just how high the minimum wage might climb in various states and across the U.S.

On the one hand, when wages are too low, that’s obviously problematic. As we discussed in our recent analysis comparing the lives of fast-food workers in Denmark with fast-food workers here in the United States, when you can’t make enough to pay rent, cover your medical bills, and feed your family — and you’re constantly at risk of losing your job or being made redundant — you suffer, your family suffers, and the community around you suffers.

But critics of minimum wage increases counter that raising the minimum wage too high can disincentivize employers from hiring and instead push them to outsource or automate. In aggregate, this process could increase unemployment rates and ultimately torpedo the economy.

Most Americans know that the Republicans rode a victory wave on November 4th, winning control of the Senate by a substantial margin; increasing gains in the house; and winning more Governorships than Democrats.

But we’d like to draw your attention to another, also profound “breaking wave.” Voters in South Dakota, Nebraska, Arkansas, and Alaska all passed measures to increase the minimum wage. The California cities of Oakland and San Francisco also passed minimum wage increases.

Since 2009, the national minimum wage has been stagnant at $7.25, prompting much consternation from labor advocates. While the elections didn’t touch the federal number, they did illustrate that the electorate – in “red” and “blue” states alike – appears to be hungry for change with respect to minimum wage rules.