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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
It’s true 60 days is the appeal deadline for unhappy plaintiff’s in this suit after the deadline then checks should be issued because outback already put money aside for that reason they trying to hold back they want it resolved so that’s the difference in why it wouldn’t take years .
I was told they have 60 days to pay us back after the court date of November 4th 2016, But the lady told me it could take weeks, months, or even years before the settlement is paid back! anyone know anything else on this?
Please does anyone know if we won and will we receive check?
What is the result of today’s hearing?
when is payment expected?
The final hearing is scheduled for 11/4/16. Claims will not be paid until after the final hearing takes place and the court grants the settlement final approval. Please keep checking Top Class Actions for updates. We will let our viewers know as soon as the settlement receives final approval!
Any word?
I had no idea about this law suit is it too late for me to get involved ?
http://www.outbacksettlement.com/mainpage/Notice.aspx
I’d print it off, fill it out and send it in to the address on the sight.
yup!
UPDATE July 25, 2016: The Outback Steakhouse settlement details can be found here.
Hi my name is leighann Harris I was in the lawsuit call me 334-315-7721
I am also involved in the outback lawsuit and lost my settlement letter.please contact me so I can have another one sent to me.815 558 7673
Did someone contact you
No I have called the office we won the settlement and I have gotten the ever so popular when we get a check you will too. So does anyone know what is going on? I asked for emails and updates. I feel like I am not getting straight answers. 346-317-6935
Im a part of outback law suit. And received a settlement letter that was lost. (337)419-6093 or can i get another sent out. Robert white