WASHINGTON, D.C. — On October 4, H.R. 3441, known as the Save Local Business Act, cleared the House Education and the Workforce Committee and will soon go before the entire House of Representatives for a full vote. The bill, if passed, could have sweeping changes on how wage theft and other class action labor lawsuits are litigated across the country after workers won a significant victory when the National Labor Relations Board (NLRB) redefined what constitutes “joint employment” in 2015. Since that change, major companies have been forced to resolve overtime pay lawsuits with significant settlements with large groups of workers.
The Obama-era ruling from the NLRB held that any company that has “indirect” control over a business can be held responsible if that business violates labor law such as the federal Fair Labor Standards Act (FLSA) which sets national minimum wage and overtime standards. With that ruling, wage theft victims working for franchises like McDonald’s and other restaurant chains could not only sue the local business owner but also the parent corporation.
Wage theft lawsuits holding both the franchise owner and corporate entity responsible are incredibly important to ensuring that federal wage and labor laws are enforced throughout the entire country for every franchise location, not just at the single business location where the allegation took place. Without the current interpretation of what constitutes a joint employer, many more franchise owners will continue to skirt worker protection laws to increase the company’s bottom line at the expense of employee pay.
If passed, the Save Local Business Act would againt redefine a joint employer as one that “directly, actually and immediately exercises significant control over essential terms and conditions of employment,” and include business practices like hiring and firing, scheduling, and “day-to-day supervision of employees.” Many labor law experts agree that the changes would make it almost impossible for corporations to be considered joint employers in overtime pay and wage theft lawsuits, leaving workers with little recourse to recover all their due wages.
Unpaid Overtime Lawsuits
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.