Sever Storey Law Firm » employment law

Withholding Severance Pay

Phil Sever — Thu, 03 Jul 2008 03:21:10 +0000

A recent article in the Chicago Tribune describes a settlement won by a veteran employee at the Indianapolis-based drug manufacturer. The lawsuit centered around Eli Lilly not paying Starr E. Johnson’s severance pay in order to have a discrimination charge that she filed be withdrawn.

The company’s refusal to pay the severance agreement came after the discrimination charge was filed. The EEOC office in Indianapolis was quoted as saying, ”A company may not condition receipt of benefits, such as severance benefits, on an employee’s promise not to cooperate with the EEOC.”

Contact our Carmel Employment Law Office if you have been wrongly terminated or your employer has violated a severance agreement.

Time is Money

Phil Sever — Tue, 29 Apr 2008 02:59:40 +0000

Oftentimes when employers have a lawsuit filed against them it is for a harassment or discrimination case with an employee. However, it is not so much discrimination and sexual harassment as one may assume, but instead stems from violations of state and federal wage and hour laws, such as:* bad record keeping* poor or non-existent company policies in place* improper procedures* bad payroll practices* incorrect time reportingBasically, “time is money”, and many good employees all over the nation are not getting their fair share. The trend developing shows many employees are not being paid for off-the-clock work hours, and many have even been misclassified as not being eligible for overtime.For example, if we look at 2005, there were 4,039 federal wage and hour suits filed, 10% more than the 3,671 filed in 2004, according to the Administrative Office of the U.S. Courts. In 2006, the number of federal wage and hour cases filed jumped another 4.2 percent to 4,207.Here is what Gerald L. Maatman Jr, a labor attorney had to say:”It’s probably the leading exposure right now for employers in the U.S., even more than employment discrimination,” says Gerald L. Maatman Jr., a labor attorney with Seyfarth Shaw in Chicago, who estimates that five to seven wage and hour class-action lawsuits are brought every day in Cook County, Illinois.If you feel like your employer is being unfair with your wages, non paid overtime, bad procedures or payroll taxes, bad time reporting, or anything similar or related, help is very easy to attain. State and Federal wage and hour laws are in place for your protection. Please don’t be afraid to exercise your rights, because there are those who are willing to fight right alongside you. Contact our Carmel, Indiana law firm for your wage and hour disputes.

Are you an Employee or Independent Contractor?

Phil Sever — Thu, 24 Apr 2008 01:18:57 +0000

The debate has raged for years over what constitutes an Employee, or an Independent contractor. There was a recent news report that shipping giant “Fedex”, is in a dispute with the IRS over categorizing their drivers as “independent contractors” and not “employees”.

Many companies like the benefits that come with independent contractors, as they do not have to pay out things like social security, taxes, overhead expenses, and it’s also a way to prevent union organizing.

Misclassification is not a new thing. Some employers do it on purpose, and some do not. What is important to realize, is that laws are in place, and they must be followed. If contract employees are misclassified, it can result in a loss of wages, and can result in unwanted scrutiny, and not to mention, possible future legal fees and court appearances.

You need to know exactly where you stand. Your employer must be very clear to you on your job duties, and he/she must make sure that the jobs you perform fall within the proper guidelines for either an employee or independent contractor.

It is recommended that you do a bit of research, and be absolutely certain that your are classified in the correct category with your employer. However, if you feel that you are being unfairly treated at your place of employment, contact our Employment Law specialist to identify possible legal action.

Wage and Hour Disputes

Phil Sever — Tue, 01 Apr 2008 14:25:13 +0000

Wage and Hour Litigation produces more “Workplace Class Action Lawsuits” than any other in 2007.

An annual report by a Chicago based law firm, Seyfarth Shaw, recommends that class action litigation is expected to continue heavily in 2008.

In 2007, the 10 largest class action wage and hour settlements totaled over $319.3 million dollars! This is the first time in 5 years that the top 10 wage and hour and ERISA class-action settlements outpaced employee discrimination cases in overall values.

To provide background on some of these major companies end up paying out, here is a list of wage and hour settlements from 2006:

1. Citigroup Global Markets – $98 Million Dollars

2. UBS Financial Services - $89 Million Dollars

3. United Parcel Service (UPS) – $87 Million Dollars

4. International Business Machines (IBM) – $65 Million Dollars

5. Morgan Stanley – $42.5 Million Dollars

6. Merrill Lynch – $37 Million Dollars

7. 24 Hour Fitness – $38 Million Dollars

8. Siebel Systems - $27.5 Million Dollars

9. Sears and Roebuck – $15 Million Dollars

10. Electronic Arts (EA) – $14.9 Million Dollars

The Fair Labor Standards Act was put in place to protect people in the workplace. If you want more information on wage and hour filings, or if you feel like you have been discriminated against in the workplace, please don’t hesitate to our Wage and Hour Discrimination in the Carmel, Indiana law firm for more information.