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In a win for hourly employees, Outback Steakhouse’s parent company agreed to pay $3 million to settle a wage and hour class action lawsuit that alleged employees were asked to donate unpaid hours to the company that were nicknamed “Outback Time.”
The three-year fight came to an end Tuesday, April 19 in a Nevada federal court.
UPDATE July 25, 2016: The Outback Steakhouse settlement details can be found here.
According to the federal Fair Labor and Standards Act (FLASA), federal overtime laws state that employers must pay overtime to employees who work more than 40 hours in a given work week unless they meet certain criteria.
Most states have additional wage and hour laws to further protect employees from being denied due compensation.
As employers have felt the squeeze on their pocket books by new federal laws over the last several years, the number of class action lawsuits accusing employers of violating wage and hour laws has increased.
Employers Can’t Ask for Donated Time Off the Clock
No matter what they call it, working for no pay is illegal if you are an hourly paid employee.
Outback Steakhouse allegedly asked hosts, bartenders, and other employees at locations nationwide to begin working during a pre-shift period of time that was called “Outback Time,” according to the complaint filed by a group of former Outback employees in a wage and hour class action lawsuit filed in 2013.
Some employees also allegedly were required to clock out even though their supervisor intended for those employees to continue working off the clock.
Unfortunately, thousands of employees in the United States work off the clock in situations that find them conducting work on unrecorded time, from attending meetings during off-work hours to completing projects during lunch breaks.
The FSLA has specific wage and hour rules that pertain to servers and bartenders. They must use less than 20% of their time for non-tipped tasks such as prepping their work stations.
The FSLA will also find an employer in violation if the employer asks a tipped employee who is earning a reduced pay rate to take over cleaning the restrooms or perform other duties that are unrelated to the position for which the person was initially hired.
Who Can Work Off the Clock?
FLSA clearly states in its federal overtime laws that employees who are nonexempt are considered hourly employees who must be paid overtime pay if they work more than 40 hours a week.
In addition to asking employees to donate work time, some employers also have illegally classified job positions as exempt in order to avoid paying overtime.
Exempt employees are those who do not fall under the FSLA’s definition of those requiring overtime pay. Examples of exempt employees are administrative or executives, some computer professionals, and some retail or outside sales workers.
However, the exempt classification is open to abuse by employers who wish to sidestep the FSLA laws requiring overtime pay to nonexempt workers.
According to the FLSA, no specific job title allows a position to be categorized as exempt unless it meets specific criteria, including but not limited to the following:
- Earn more than $23,600 per year ($455 per week)
- Perform exempt executive job duties such as the regular supervision of two or more employees; also have management as the primary duty of the position; also have some genuine input into the job status of other employees (the hiring, firing, promotions, or assignments.)
Time Could Be Running Out
The statute of limitations for FSLA wage and hour violations is two to three years.
If you suspect that your employer or former employer has violated federal overtime laws or asked you to work off the clock, it is imperative you speak to a lawyer to find out if joining a wage and hour class action lawsuit against that employer would be in your best interest.
Join a Free Wage & Hour Class Action Lawsuit Investigation
If you were forced to work off the clock or without overtime pay within the past 3 years, you have rights – and you don’t have to take on the company alone.
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58 thoughts onOutback Agrees to Pay Workers $3M in Wage and Hour Lawsuit
Just received a check for nearly $1500. There is no explanation as to how the number was computed but I’ve been with the company for nearly 2 decades so perhaps that timeframe played a role? I was not expecting anything to come of mailing in that form several months ago so it was quite unexpected. I sure hope others are compensated more than $10 like you all claim to have received!
Is there a phone number on the check/paperwork you received? I’ve moved since working at OB and want to make sure I’m receiving it.
Did anyone get a letter saying the amount
I got 122
I got a whopping…. drum roll 11.64… what a joke. Shouldn’t of even wasted my time on the paper work. Pure BS
Didn’t you get papers saying what amount you get in the pay put
Yep unbelievable I knew it. That’s okay through like i said before going to hire an attorney and peruse a legitimate payout it may take me another 4 years but I am a firm believer that it will be made right!! The attorneys should be ashamed of themselves. .. Getting a dollar off of the poor mans sweat and labor.. When i obtain a laywer I’ll come back and post it for anyone who refuses to accept their payment. I know we all could use extra cash, but if you endorse that check you really are DONE
I got a whopping $8.70. Please let me know if you hear any good news.
Mine was 11.64 cents what a joke really! Beyond annoyed! What a bunch of BS
Didn’t you get papers saying what amount you should receive
Did you get a award letter with the amount you should receive
My husband worked for the company for 7 years and received $12. What a rip off. Guess the lawyers are happy with there 1.5 million.
I am no longer an employee there and I worked for this shitty company for 7 years and my check was for $70. I waited 3 years for justice and all I got was $70. I call bullshit. But I should have known.