United Airlines skycaps settle minimum wage lawsuit, awarded $1,000 each

A total of 135 skycaps contracted to work for United Airlines will receive about $1,000 each as part of a settlement over a wage dispute.

The skycaps alleged they weren’t paid the federal minimum wage and weren’t allowed to keep all the tips they received. A federal judge approved a quarter-million dollar settlement this week. The terms include attorney fees for those who represented the skycaps. Each will receive an “amount proportionate” to the work they performed between October 2006 and August 2008. Continue reading United Airlines skycaps settle minimum wage lawsuit, awarded $1,000 each

Your Baby Can Read going out-of-business

The company which markets the Your Baby Can Read product is going out-of-business.

Your Baby Can LLC is citing the high cost of fighting lawsuits filed by consumers who allege the company’s television and other advertisements promoting the once-popular product are false as the reason for stopping operations. The company posted the following statement on its Web site, according to a Christian Science Monitor report this week: Continue reading Your Baby Can Read going out-of-business

FTC sues pre-paid calling card company over deceptive advertising

The Federal Trade Commission is attempting to crack down on the claims made by companies issuing pre-paid calling cards, believing the minutes promoted on cards are usually far less than what a consumer can expect to receive.

Pre-paid calling cards are used by many immigrant Americans to call friends and families in their home country. For some, these cards are the only means of communication with their family. But if someone purchases a card that advertises up to 30 minutes of talking time, it’s likely they’ll receive only about two-thirds of that, with the rest being consumed by fees per call. Continue reading FTC sues pre-paid calling card company over deceptive advertising

McMillan’s Home Care Agency Settles Overtime Lawsuit

About 1,500 home health aides will be able to benefit from a $1.1 million settlement of a class-action suit alleging their employer failed to pay them overtime, even though many of them worked 60-hour weeks. It is the first lawsuit against a New York home care firm to successfully reach a class-wide settlement over violations of state wage and hour laws.

Current and former employees of New York City-based McMillan’s Home Care Agency will each get a share of the $1.1 million based on overtime hours that were never paid at the time-and-a-half rate that state law requires. McMillan’s is also prohibited from retaliating against employees who complain about wages and hours and will be required to appoint an administrator to deal with complaints about wages and expense reimbursements. Continue reading McMillan’s Home Care Agency Settles Overtime Lawsuit

Supervisors Could Face Personal Liability for Federal Wage and Hour Violations

Supervisors are being reminded that under the Fair Labor Standards Act (FLSA), employees can sue supervisors who violate the law personally – not just the organization itself.

The act defines the term “employer” as “any person acting directly or indirectly in the interest of an employer.”
Whether or not a supervisor can be personally sued depends on how much of a role they have in making the decision to allow off-the-clock work or allow employees to work without overtime pay. And employees can sue three years after the fact, and receive twice what they were owed. Continue reading Supervisors Could Face Personal Liability for Federal Wage and Hour Violations

FTC redefines “up to” for advertisers

Federal consumer officials are warning advertisers about the use of the phrase “up to” in any ads because shoppers are mostly confused or misled by the language.

According to a report from AdWeek.com, the Federal Trade Commission has issued new guidelines for use of the phrase “up to” in future advertisements because a majority of consumers believe it means they’ll most likely receive the number to which “up to” refers. Continue reading FTC redefines “up to” for advertisers

Foreclosure fraud whistleblowers awarded $46.5M as part of federal settlement

A total of six whistleblowers have received at least $46.5 million as part of the settlement with nation’s five largest mortgage lenders accused of widespread foreclosure fraud.

According to a report from CNNMoney.com, the $20 billion settlement reached between the U.S. Dept. of Justice and Bank of America, Wells Fargo, JP Morgan Chase, Citigroup, and Ally Financial, set aside that lump sum for the six whistleblowers who helped the government uncover the fraud committed by these financial institutions. Continue reading Foreclosure fraud whistleblowers awarded $46.5M as part of federal settlement