Retailer Urban Outfitters Accused of Committing FLSA Wage Violations

A woman accused Urban Outfitters of committing FLSA wage violations after the company hired her as a department manager.

Plaintiff Michelle O. claims her work consisted of labor that, according to the Fair Labor Standards Act (FLSA), qualifies her to earn overtime wages.

Michelle alleges that she did not have high-level responsibilities, nor did she supervise two or more employees, which are among the federal law’s criteria for a salaried manager. Michelle says she worked 55 hours per week but was not compensated the additional hours because she was salaried.

According to Michelle, Urban Outfitters committed FLSA wage violations to avoid hiring hourly employees to perform the manual labor that Michelle and other “managers” completed for free. Urban Outfitters retail locations were allegedly given strict labor budgets that managers followed by hiring “managers” such as Michelle.

FLSA Overtime Requirements

Under the FLSA, a work week consists of seven consecutive days. Overtime is calculated at time and a half when the hours worked within one week reach more than 40. Across the US, many employees are misclassified as managers when employers do not want to pay overtime wages.  This can be a violation of federal law. Even salaried workers can be eligible for overtime pay when their hours fluctuate or when they work as outside sales representatives.

Misclassifying hourly employees as exempt from FLSA protections only benefits the employer.  Other FLSA violations include employers requiring employees to work off the clock. Managers simply tell employees to clock out and continue working. Thousands of employees in the U.S. attend meetings during off-work hours or complete projects during their lunch breaks, which are violations of the law.

Off-the-clock Work is FLSA Wage Violation

FLSA states that employees who are nonexempt should be paid overtime pay if they work more than 40 hours a week.

It is illegal to ask employees to donate work time. Employees should be credited for the time worked, including overtime. Under the FSLA, hourly employees should be compensated for the time it takes to change in and out of uniforms, run work-related errands, perform opening and closing tasks, attend meetings or trainings, and checking emails and voice mails.

Exempt employees are those who do not fall under the FSLA’s definition of those requiring overtime pay. Examples of exempt employees are administrative workers or executives, some computer professionals, and some retail or outside sales workers. Unfortunately, many employers try to sidestep the FSLA laws requiring overtime pay to nonexempt workers.

The statute of limitations for FLSA wage violations is two to three years. Workers are awarded hundreds of millions of dollars each year when employers are found guilty of FLSA wage violations. Many states enforce additional laws to protect workers’ rights.

If you suspect that your employer has violated federal overtime laws or asked you to work off the clock, you could be eligible for compensation through legal action.

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