DOL Investigating Oakland Raiders Labor Lawsuit

Professional sports leagues in the United States have faced a rash of lawsuits in the past year, many of which involve allegations of labor law violations. Both the San Francisco Giants and the Miami Marlins faced lawsuits from former unpaid interns who claimed they should have received a minimum wage as employees. The Giants further agreed last year to pay a group of security employees over $500,000 for various labor law violations. The most recent professional sports team to garner national attention for possible labor law violations is the Oakland Raiders.

The lawsuit was filed by Lacy T., who is part of the cheerleading squad for the team, known as the Raiderettes (for safety purposes, cheerleaders only reveal their first names). Both current and former cheerleaders have joined in the class-action suit, which alleges several wage and hour violations against the football organization.

The plaintiffs claim the Raiders violated state labor laws in the following ways:

                                   

• The cheerleaders were expected to work more than eight-hour shifts without necessary breaks or overtime compensation, violating state requirement for meal and rest breaks, as well as overtime laws.

• The Raiders withheld pay until the end of the season, violating California laws regarding paydays and pay periods.

• That paycheck at the end of the season paid $125 per game for 10 games, which adds up to only $1,250 for 9 months of work, including 3 rehearsals per week, workouts, fittings, event appearances, photo shoots, and other mandatory meetings. Overall, the pay comes out to approximately less than $5.00 per hour for a season’s work, which violates California’s minimum wage laws.

•  The Raiders require the cheerleaders to pay for their own expenses related to required hair styling, makeup, and travel.

• The Raiders further unlawfully deduct from a cheerleader’s paycheck for minor infringements, such as chewing gum, bringing the wrong set of pom-poms to practice, or wearing the wrong type of outfit to rehearsal.

After all of these alleged violations, many Raiderettes do not even break even for the season.

The federal Department of Labor (DOL) has recently involved itself in the lawsuit by launching an investigation into violations of federal labor laws. The DOL is apparently looking into how several other teams treat their cheerleaders, as well. If the DOL finds that the Raiders violated federal employment laws, they have the power to order the organization to reimburse the cheerleaders for twice the amount of compensation they were originally denied. For this reason, the Raiders may end up paying significantly more than if they had simply followed labor laws to begin.

Some employers, such as professional sports organizations, believe they are above labor laws and do not have to follow them. However, cases like this demonstrate that employment laws apply to professional sports teams like any other employer, and the Raiders may face the consequences like any other company.

If you believe your employer has violated any wage, hour, or other labor laws, contact the Pershing Square Law Firm for assistance today.

Highest State Minimum Wage Proposed in California

In his recent State of the Union address, President Obama urged legislators to take charge in pushing minimum wage increases through Congress. California State Senator Mark Leno (D-San Francisco) took the request to heart, as he introduced a state bill on February 3, 2014 that would make California’s minimum wage the highest of any state if passed.

Currently, a law is in place that will raise the state minimum wage from $8.00 per hour to $9.00 per hour in July 2014, then again to $10 per hour in 2016. There is no provision in the current law for further annual increases based on inflation after 2016. Sen. Leno’s proposed bill would step up the wage increase as follows:

• $11.00 per hour in 2015;
• $12.00 per hour in 2016;
• $13.00 per hour in 2017;
• Annual adjustments tied to inflation starting in 2018.

While the bill is expected to garner some opposition, Leno defends the aggressive increases by citing the high cost of living in California. He stated that the federal minimum wage is simply a starting point, and state legislators should identify the needs of residents of their state and adjust the state minimum wage accordingly.

Current California Minimum Wage

Residents working 40-hour weeks at the existing state minimum wage of $8.00 per hour take home $16,640 annually, before taxes. The poverty line in California for a four-person family with one wage earner is $23,850. According to the United States census, this wage discrepancy puts approximately 24 percent of California residents under the poverty level despite working full-time jobs.

State Senator Leno owns his own company and pays his workers a minimum of $16 per hour. Leno states that paying higher wages reduces turnaround and increases employee productivity. He stated there is no excuse for companies making high corporate profits while some of their full-time employees need food stamps and other government assistance to survive.

Earlier this year, 600 prominent economists from the Economic Policy Institute signed a letter to federal lawmakers urging them to pass a federal minimum wage of $10.10 per hour. These economists assert that raising the minimum wage will bring many families out of poverty, thereby reducing the need for government public assistance and increasing spending by consumers. Recently, some conservative politicians and entrepreneurs in California have jumped on board, demonstrating support for a minimum wage increase and reduction in poverty.

Though the $13 per hour proposal would be the highest state minimum wage in the United States, it will still not be the highest local minimum wage. Last year, the city of SeaTac, Washington raised its minimum wage to $15.00 per hour. Furthermore, Los Angeles legislators have a bill on the table to raise wages for hotel workers to $15.37 per hour, which would be the highest in the country. San Francisco has the highest minimum wage in California, currently at $10.55 per hour.

Everyone deserves to be adequately paid for their work. If you believe your employer is violating wage and hour laws, call the Pershing Square Law Firm today for help.

Federal Contractors to See Potential Wage Increase

Minimum wage has been a hot topic over the last year, and continues to be so into 2014. The Fair Minimum Wage Act now sits in front of both the House of Representatives and the Senate. The Act aims to raise the federal minimum wage from $7.25 per hour to $10.10 per hour in three stages over the next several years. The Act would further raise the minimum wage for tipped employees and ensure that, in future years, the minimum wage would adjust annually for inflation, as it does in many states.

While the majority of American minimum wage employees will have to wait for the bill to pass, another group of employees in the United States may see pay increases sooner. In his State of the Union address, President Obama announced his plan to sign an executive order, which will raise the minimum wage for federal contract employees to $10.10 per hour. Because federal contracts can be so complex, the new wage requirement will not affect anyone who is currently under contract, but will affect all of those who sign new future contracts or renewed contracts.

The President stated the order could be expected in a few weeks, and the White House claimed it believes that “[b]oosting wages will lower turnover and increase morale, and will lead to higher productivity overall.” Many lower wage-earning federal contract employees work on military bases as dishwashers, janitors, food servers, and launderers. Obama specifically voiced his belief that the people who help take care of United States troops should not have to live below the poverty level.

Opposition for the Wage Hike

Of course, people quickly spoke up against the President’s plan, citing concerns or simply downplaying the bill. First, some industry groups took the order as a slight against federal contractors, stating the President singled out contractors for the increase, which may insinuate that contractors do not already pay a fair wage.

Industry groups cited the Service Contract Act, which already requires employees under certain types of contracts to be paid much higher than $10.10 per hour.

Other politicians pointed out that the scope of the executive order would be much smaller than it sounds, stating that only approximately 10 percent of the 2.2 million federal contract employees currently make less than $10.10 per hour. Those are the only employees who would be covered under the order.

However, the Obama administration pointed out that the increase will still apply to 200,000 to 300,000 Americans, and will increase their standard of living. That is better than nothing, some politicians maintain. Others see this order as a push to pass the Fair Minimum Wage Act through Congress. Obama also commented, in his State of the Union address, that he would continue to encourage that bill, and for Congress to stand up for all workers in the United States by increasing the federal minimum wage.

Though the federal minimum wage is currently still $7.25 per hour, the minimum wage in California is $8.00 per hour for 2013. If you have any questions regarding minimum wage or other wage and hour issues, call the Pershing Square Law Firm today for help.

Recent News Stories Reveal Sexual Assault of California Agricultural Workers

Both federal and state laws prohibit sex discrimination and harassment in the workplace by way of Title VII of the Civil Rights Act of 1964 and California’s Fair Employment and Housing Act (FEHA).  Under unlawful sexual harassment, the laws include unwelcome sexual propositions or advances, offensive statements or gestures, leering looks, derogatory comments, statements about a person’s appearance or body, and physical conduct, such as unwanted touching, assault, or cornering or blocking movements.

If an employee has been sexually harassed, he or she would normally be advised to oppose the behavior and report the incident to a supervisor or other appropriate superior.  Many companies have human resources departments or other channels through which to file a report, which may be set out in employer policies or employee handbooks.  No one should be expected to tolerate sexual harassment or a hostile work environment and no one should be afraid to report such conditions.

Sexual Harassment of Farm Workers

Unfortunately, not all workers feel able to report offensive and illegal behavior in the workplace.  National Public Radio recently published a two-part series on sexual assault of female farm workers.  Each part focused on a female who experienced sexual assault by a supervisor while working in the fields of California.  Both of these women were brave enough to eventually report the wrongdoing, however the story reveals there are many, many more women whose harassment and assault at work goes unreported.

Recently, advocates from the Equal Employment Opportunity Commission (EEOC) have been using advertisements on rural radio stations to encourage women who have suffered sexual harassment or assault at work to feel safe and come forward to report the unlawful behavior.  However, there are several reasons why female farm workers are afraid to do so.  These reasons include:

·         Many farm workers are undocumented are fear getting deported if they come forward and lodge a complaint with a government or law enforcement agency.

·         They fear they will lose their jobs.  Many farms are run by a single supervisor who has complete control over who gets hired, promoted, paid, and fired.  Since that supervisor is often the harasser or assaulter, the victims fear not being able to feed their families or pay their bills if they speak.

·         They fear they will not find another job.  As NPR reported, word travels quickly among farm supervisors in California.  If other farm supervisors or workers hear that a female worker has complained of or reported sexual mistreatment, no one else in the industry will hire her.

EEOC officials and legal aid attorneys in the rural areas state that the more female agricultural workers come forward, the more consequences the offending supervisors may have to face.  Those supervisors who are in hot water with the law will then serve as a warning to others in the industry that there may be both criminal and civil consequences for continued workplace harassment and assaults.

As previously mentioned, no one should have to endure offensive treatment on the job.  If you believe you have been the victim of sexual harassment or any other type of unlawful behavior at work, contact Pershing Square Law Firm for assistance as soon as possible.

Some Legal Implications of Social Media in Business

Many businesses, especially relatively small ones, use social media as an avenue for free and widespread advertising and exposure.  Information on social media sites can potentially extend to millions of people, therefore smaller businesses have the opportunity to advertise alongside large corporations for very little or no cost.  The opportunities presented by social media and the internet should not be passed up, however businesses need to be aware of the legal risks and implications that may accompany the use of social media in the workplace.  The following are some legal issues that arise out of social media use by a business.

Vicarious Liability

Business owners often enlist the help of one or more employees to implement social media campaigns and manage the company’s social media presence.  However, even qualified and responsible employees may accidentally post something that may incite a lawsuit for defamation, copyright infringement, invasion of privacy, among other reasons.  Employees without legal knowledge may not realize the wrongfulness of their actions.  However, whether the post was unintentional or whether or not the employee had permissions for the post may not shield a business from liability if the employee was carrying out a work-related task.  Businesses should therefore have clear policies and guidelines for any posts by employees published on behalf of the company.

Ownership Disputes

If you are an employee who posts on behalf of your employer, you may gain a popular and/or regular following for blogs, Facebook, or Twitter posts.  If you decide to leave the company, you may wish to take your online followers and content that you have created with you.  Many companies will not allow you to do this for fear of losing customers.  Therefore, many employees in this situation find themselves in a legal ownership battle with their former employers.  If you are charged with creating original and popular content for social media or other websites, make sure you know your employer’s policy on ownership before you hand over any valuable material.

Litigation Evidence

If your company or any employees become involved in a lawsuit, online content may be admissible against you under the category of electronic business records.  Such online content may include blog articles, emails, status updates, video posts, instant messages, Tweets, etc.  Furthermore, if you are an employee or former employee bringing legal action against your employer, that employer may be penalized by the court for improper record retention if they delete any relevant online content.

These are only a few of the legal risks that come with social media usage for both employers and employees.  If a company allows employees to post on social media on its behalf, the best policy to is thoroughly train the employee on social media procedures and limitations.  If you are an employee who regularly manages your employer’s social media presence, it is always a good idea to have a very clear understanding of the company’s policies in order to avoid future conflict. Most importantly, if you are involved in a dispute with your employer that you may escalate to legal action, always call an experienced employment attorney at Pershing Square Law Firm for help.