Category: Uncategorized

Is Your “Unpaid Lunch” or “Prep Time” Really Wage Theft? Winning Back Pay for “Off-the-Clock” Work

February 11, 2026

We Win Cases Where Companies Steal Time: The Fight Against “Off-the-Clock” Work and Unpaid Wage Claims

Employees search every day for answers to one common question: “Do I have to get paid for [insert activity]?”

Employers often have subtle, yet illegal, policies designed to squeeze extra, unpaid work out of their staff. This is known as ”off-the-clock” work, and it is a clear violation of wage and hour laws. At LOSO LLC, we consider this what it is—wage theft—and we have a track record of securing significant victories for employees who were told they had to work for free.

If your employer forces you to perform any of the following duties without pay, you have a winnable claim for back wages and liquidated damages:

  • The Unpaid Lunch Break Trap: Being forced to answer calls, monitor email, or perform any work duties during your 30-minute “unpaid” meal break. If you are not completely relieved of all duties, that time must be paid.
  • Pre- and Post-Shift Work: Being required to boot up a computer, perform safety checks, change into a uniform (donning and doffing), or complete required setup tasks before you are allowed to clock in, or finish work tasks after you clock out.
  • Required Training and Meetings: Being asked to attend mandatory training, company meetings, or team huddles outside of your scheduled work hours.
  • “Waiting” or “On-Call” Time: Being required to wait on-site for a job or shipment, or being restricted to a specific area while on-call (known as “engaged to wait”). This time must often be compensated.

The Proof That Leads to Victory

You might think you have no proof because the time isn’t on your official timecard. But we know how to investigate and win these cases. We look for:

  • Company Policy: Does the employee handbook instruct you to perform tasks off-the-clock?
  • Electronic Records: Door entry logs, computer login/log out times, or time-stamped emails that conflict with your official punch card data.
  • Witness Testimony: The testimony of co-workers who were subject to the same illegal policies.

Meticulously connecting these pieces of evidence will prove a pattern of wage theft. If you have worked a single minute without pay, we can help you turn that minute into a winning claim.

 

 

Understanding Independent Contractor vs. Employee Classifications: A Small Business Guide

December 9, 2025

Independent contractors are a lifeline for small businesses. Although these organizations may have some employees on their payroll, they often work with independent contractors to save costs on hiring more permanent hands, especially since they’re operating on a limited budget. 

That said, hiring workers is one thing; classifying them properly is another. While the former likely won’t get you in trouble, the latter could put you at risk of severe financial penalties, including paying the back taxes of affected staff. 

To avoid this scenario, it’s critical to understand employee classifications according to US labor laws. In this article, we’llprovide a guide to help you categorize the members of your workforce in compliance with federal regulations. Let’s dive in: 

Classifying Employees Based on the Common Law Rules

The Fair Labor Standards Act (FLSA) uses the economic reality test to determine whether an individual falls into theemployee or independent contractor category. This test considers six vital factors for worker classification:

  1. The degree of the employer’s right to control the manner in which the work is to be performed.
  2. The worker’s opportunity for profit or loss is based on their managerial skill.
  3. The worker’s investment in equipment or materials required for their task.
  4. The extent to which the service rendered is an integral part of the employer’s business.
  5. Whether the service rendered requires a special skill.
  6. The degree of permanence of the working relationship.

To help business owners interpret these factors and determine the classification of their workforce, the Internal Revenue Service (IRS) provides some common law rules or questions to consider:

Behavioral Control

According to the IRS, the question employers should ask and answer under this rule to classify a worker is: Does the company control or have the right to control what the worker does and how the worker does the job?

Usually, employees don’t have control over factors like work hours, where tasks and duties are executed, and the manner or equipment used in their execution. In contrast, independent contractors have more freedom in these areas. They can determine where, when, and how they work.

Financial Control 

This rule examines the level of control that employers have over the financial aspects of the individuals on their payroll. The defining question here is: Does the business direct or control the economic and business aspects of the worker’s job?

The IRS states that some factors business owners should consider while answering this question include how the individual is paid, who supplies the equipment, and whether the organization reimburses expenses. 

Generally, employees receive wages on a salary or hourly basis, with tax and Social Security deductions made by the employer. Organizations also provide the tools and supplies required by employees for their duties. 

The scenario differs for independent contractors, who receive their earnings per project, provide the required equipment, and have to handle taxes themselves.

Type of Relationship 

Business owners can determine the classification of workers under this rule based on the following questions: Does the employment require a written contract with employee-type benefits? Will the relationship continue, and is the work performed a key aspect of the business?

Employees typically sign contracts that specify certain benefits that they’re eligible for, such as pension plans, paid vacations, and insurance. They also have a long-term relationship with the company. Finally, if an individual’s duties are directly related to the core operations of the company, then they fall under the employee category. 

In comparison, independent contractors don’t have access to pension or insurance benefits from their employers, and the duration of the relationship usually lasts till the end of the project. The responsibilities and tasks they handle are also rarely related to the organization’s core functions.

According to the IRS, businesses must evaluate all three common law rules to determine the classification of a worker. In other words, one factor alone doesn’t determine an individual’s designation as an employee or independent contractor. 

Work With Expert Legal Counsel to Comply With FLSA Employee Classifications 

Categorizing employees in line with the Fair Labor Standards Act can be a tricky task for small business owners. Usually, an individual can fulfill one or two of the common law rules and fail to meet the others. 

Misclassifying a worker in this case can lead to lengthy legal battles and costly financial consequences. To avoid these outcomes, expert legal assistance becomes a necessity for small businesses. 

An experienced attorney can help you understand the laws around worker classifications and review your company’s employee classifications to comply with the FLSA.

At the Law Office of Sheri Oluyemi, we can help your business stay within the boundaries of FLSA employee classification regulations and avoid the costly penalties that can arise from misclassifying your staff. We’ll evaluate your company’s classifications and provide expert counsel to keep you compliant with federal and state laws. Contact us today to schedule a free teleconference consultation.

Cost-Effective Strategies for Defending Employment Claims

October 8, 2025

An employment lawsuit puts your business in the spotlight for all the wrong reasons. But the potential effects of these courtroom battles on your reputation aren’t the only issue to worry about. 

There’s also the financial cost. According to the data, businesses spend around $125,000 defending workplace charges. Parting with such an astonishing sum can cripple your business. 

However, you can position your company to come out on top with minimal financial losses during these cases by taking advantage of some cost-effective measures. Here are a couple of proven strategies for defending employment claims:

Develop Solid HR Policies That Are Compliant With State and Federal Regulations

Your defense against an employment law claim shouldn’t begin in the courtroom. On the contrary, it should start with robust business structures and policies. Your company should have policies on workplace harassment, diversity, compensation, etc. 

These policies also need to align with local and federal laws. More importantly, it’s good practice to have them documented in an employee handbook and enforced across all departments in the organization.

Why are these steps necessary? First, it’ll reduce the risk of potential discrimination/harassment claims since employees know the company’s policy around such issues and the conduct that’s appropriate within the workspace.  

Also, nothing weakens your defense in court like non-compliance. But by taking steps to comply with state and federal employment laws, you can strengthen your argument and show that you implemented the necessary measures to protect your staff.

Investigate and Address Employee Complaints

Harassment and discrimination cases don’t always have to end up in court. You can prevent a lengthy legal battle by attending to any concerns that employees have the moment they arise.

When a staff member complains of unfair treatment, rather than brushing it under the rug, it’s critical to investigate their claims immediately. Ensure the investigations aren’t one-sided, and enforce disciplinary measures in line with company policies if the claims are true.

By dealing with these issues promptly and appropriately, you can save your company thousands of dollars in legal fees.  

Prioritize Documentation 

Evidence gives you a solid advantage in a legal battle. That’s why detailed documentation in the workspace is critical. You should have records of staff performance, feedback, compensation/benefits, complaints, disciplinary actions, and employment termination. 

When harassment or discrimination issues arise in the office, it’s also vital to document the investigation process. These records should include testimonies from the parties involved and other pieces of evidence that aid the inquiry. 

If disciplinary measures are taken, document those as well. Ensure that all documents are updated and preserved properly. When an employee files a lawsuit against your company, these records can help you counter their claims and prove that you handled the issue fairly.

Invest in Reliable Legal Defense 

You want to go into a courtroom battle with the confidence that you’re backed by a proven attorney. You want to go into a courtroom battle with the confidence that you’re backed by a proven attorney. However, while expert legal counsel is vital, you shouldn’t opt for just any employment lawyer. 

The best option for your case is someone with expertise in your industry and a reliable track record of handling lawsuits similar to yours. 

It doesn’t have to be a lawyer from a mega law firm either. Many smaller firms and solo practices also possess in-depth knowledge of labor regulations and a proven record of defending employment claims. The trick is to find a lawyer who’s the right fit for you and not one that solely looks good on paper. 

Reach Out to Our Expert Employment Law Attorneys to Defend Your Business 

If your company is facing a claim from a staff member, a proven lawyer is your best line of defense. 

Our legal team at the Law Office of Sheri Oluyemi has a robust understanding of US employment laws and extensive experience defending employment claims with a consistent track record of success. We have the hands-on insights to tackle your claim, regardless of how complex it may seem.

We’ll work closely with you, analyzing the evidence to build a solid defense that puts you in the best position for victory. Contact us today for a free teleconference consultation.

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The Importance of Clear Employee Handbooks for Small Businesses

September 9, 2025

Introduction

Successful businesses are built on making the right decisions. As a small business owner, one of the most valuable choices you can make for your company is investing in an employee handbook. 

You’re probably wondering why a document with around 50 pages of corporate jargon is such a big deal for a brand with 15 or 20 employees.

Let’s look at it this way: one poorly handled discrimination case can lead to a courtroom battle or land you in trouble with the EEOC, resulting in a hefty fine. But with an employee handbook explaining company policies, including how you handle discrimination and harassment cases, you may avoid any of those scenarios. 

In this article, we explain some benefits of an employee handbook for small businesses like yours, including how it can save you from legal hiccups. Let’s dive in:

1. Onboard Employees With Ease

As a small business that’s just starting, you probably have a few employees right now. Onboarding these individuals probably took a while because you needed to explain all the vital bits about the business, even though things are still taking shape.

Now, as the business grows, more employees will come into the picture. Your systems and structures will also become broader and complex. Imagine you had to do the onboarding process from top to bottom for each new staff member at this point. How stressful do you think that would be for you and your employees, especially considering the amount of information you’d be feeding them?

With an employee handbook, you can skip this burdensome step because everything about the company is already documented.  

A handbook ensures new hires can learn about their roles, company policies, office culture, and other critical details as quickly as possible. They also won’t struggle to recall these pieces of information because they can refer to the handbook.

2. Clarity Across All Aspects of the Business 

Without a handbook, you’re expecting your employees to know how the business works off the top of their heads. However, running your company this way can lead to conflicts, since there’s no documented outline for employee roles, code of conduct, or compensation.

Things can quickly get mixed up on a day-to-day basis, leading to misunderstandings. A handbook defines each worker’s responsibilities, the appropriate behavior within the office space, and employee benefits/compensation.

No one is left guessing, and there’s much more consistency in how the business operates daily.

3. Reduce the Risk of Legal Tussles 

An employee handbook doesn’t contain employee responsibilities alone. It also features workplace policies on important matters related to federal and state laws, such as harassment and discrimination.

A detailed employee handbook will explain the company’s stance on harassment and discrimination within the workplace, how employees can file complaints when they’ve been treated inappropriately, and how the business will handle these claims. 

By outlining these details, employees will know the conduct expected of them within the office. They’ll also feel more protected because they know the company has a framework for dealing with unfair treatment. 

In other words, it helps keep the business compliant with state and federal anti-discrimination laws, thereby preventing any legal hiccups that can arise from such situations. In the event of any legal tussles, your handbook also serves as evidence to prove that your business places a priority on treating staff with fairness and has protocols in place to handle harassment cases. 

Working With an Expert Legal Team to Draft Your Employee Handbook

Your company’s handbook is a vital resource that explains company policies, employee roles, office conduct, compensation, and anti-discrimination regulations. Outlining these details eliminates guesswork and ensures consistency in business operations.

However, a handbook isn’t a document you should draft hastily. It requires expert guidance, especially around areas related to your company’s anti-discrimination policies. Professional legal counsel is necessary in this aspect to keep your business protocols compliant with federal and state regulations.

At the Law Office of Sheri Oluyemi, our expertise in US employment laws is extensive. We can leverage our legal insights to help you draft an employee handbook that aligns with America’s labor laws. Contact us today for a free teleconference consultation.

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5 Common Employment Law Mistakes Small Businesses Can Avoid

August 1, 2025

In 2024, the Equal Employment Opportunity Commission (EEOC) helped more than 21,000 individuals reclaim around $700 million in settlements for workplace discrimination charges. Within that same year, the commission received 88,531 new charges of discrimination—a 9% increase from the previous year.

If you run a small business, the last thing you want is to have your brand among these numbers. Not only can it lead to significant financial losses, but there’s also the potential damage to your reputation.

You can avoid these possibilities by staying compliant with employment regulations. In this blog post, we provide five employment law mistakes that small businesses make in the US and how you can avoid them:

1. Ignoring the Employee Handbook

As a small business still finding its feet, it’s easy to think some things aren’t essential. For instance, since the brand is barely a couple of years old and has one or two workers, what’s the point of an employee handbook? Your staff should be able to remember the few policies that guide the business.

But without proper documentation, you’re leaving too much room for guesswork. Plus, when disputes happen with employees over office practices, you have no tangible evidence to support your side of the argument.

Let’s not forget that employment laws change regularly, and your company policies should follow as they do. However, when there’s no handbook, tracking what needs to be reviewed is hard.

How to avoid it:

  • Create a detailed company handbook explaining company policy, employee roles, compensation, etc.
  • Review your handbook periodically and make changes based on new state and federal regulations.
  • Ensure employees know the new changes and receive an updated handbook version.

2. Refusing to Adhere to Overtime Laws

Overtime pay is essential to the Fair Labor Standards Act (FLSA). Based on the regulations, non-exempt staff are entitled to overtime wages if they work beyond the standard 40 hours in a week.

However, some businesses fail to comply with these regulations, denying staff their due compensation and putting themselves at risk of lawsuits, fines, and reputational damage.

How to avoid it:

  • Consult an expert attorney regarding federal and state wage laws, especially overtime.
  • Classify exempt and non-exempt employees correctly.
  • Invest in reliable time-tracking systems to monitor employee hours and ensure you pay overtime when due.

3. Failing to Stay Informed About Regulatory Changes

As a business owner, there’s so much to keep track of—industry trends, customer purchasing behavior, competitors, etc. Amid these factors, you must also pay attention to federal and state employment laws.

However, some business owners can focus on everything else and ignore regulatory changes. But, while skipping industry trends might not have you tangled in a legal battle, failing to monitor local and federal employment laws will.

How to avoid it:

  • Stay informed on labor laws across all states where your company operates and at the federal level.
  • Partner with an expert legal team for legal advice and to regularly review company policies to ensure they adhere to current regulations.

4. Handling Discrimination Cases and Other Disputes Poorly

Statistics show that more than 52% of US employees have experienced inappropriate behaviors in the workplace. At a global level, the number of workers who have experienced harassment is 23%, almost 750 million individuals.

Most companies often fail to handle these cases properly, dismissing them and forcing victims to seek justice through long-drawn lawsuits.

How to avoid it:

  • Develop detailed anti-discrimination and harassment policies for your business.
  • Educate all employees, including senior staff members, on these policies and the behaviors that foster a respectful workplace environment.
  • Handle claims promptly and adequately per company policies, beginning with extensive investigations.

5. Neglecting Employee Contracts

It’s often the case that small businesses hire workers without employment contracts or offer letters. In such scenarios, word of mouth doesn’t carry as much evidential weight as proper documentation when disputes happen.

Without written documents, you cannot support specific actions, like terminating an individual’s employment over disciplinary issues.

How to avoid it:

  • Draft detailed employee contracts, with clear information on roles, wages, work hours, overtime pay, and possible termination.
  • Ensure contract records are adequately preserved, primarily through secure digital means.
  • Train staff members on accurate record keeping for contracts and company documents.

Final Thoughts

One misstep regarding US employment laws can lead to a lengthy lawsuit, financial penalties, and reputational harm. That’s why your business should take steps to comply with labor regulations and avoid costly mistakes.

Partnering with an expert law firm for legal counsel is the safest bet to keep your company within the boundaries of state and federal laws. At the Law Office of Sheri Oluyemi, we possess an extensive understanding of US employment regulations.

As your legal partner, we’ll review your company’s policies and practices to ensure they adhere to the existing laws and offer expert advice to protect you from any missteps with your employees. Reach out to us today for a free consultation.

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Crucial Legal Considerations for Employers Regarding AI Use in the Workplace

June 5, 2025

Nearly every workplace has caught the AI bug, and we’ve all integrated it in one way or the other into our processes. But, even though AI might be the new life-saving productivity hack, there are still some crucial elements to keep in mind before implementing the technology in the workspace. 

The legal landscape surrounding AI has seen some significant regulations in recent months. As such, it’s no longer about deploying the best tools in your day-to-day operations. Compliance is now a factor business owners must consider. 

In this article, we discuss some important considerations for employers as they implement AI systems into company operations: 

Federal and State Laws 

The potential for AI might be limitless, but that doesn’t mean organizations can use them without boundaries. In recent months, more federal and state guidelines have determined how employers can utilize artificial intelligence technologies within the office space. 

For instance, Colorado enacted AI legislation in May 2024 that requires developers and deployers of AI systems to use reasonable care with these technologies to avoid occasions of discrimination, especially with tools that are involved in making consequential decisions. 

Elsewhere, the State of New York has prohibited using an automated employment decision tool (AEDT) during screening processes for employment and promotion in the city unless specific factors are in place. 

Some criteria required for businesses to utilize AI tools during hiring or promotion include a published bias audit of the tool one year before its use and a 10-day notice to candidates about the deployment of AI and the qualifications it’ll evaluate in the screening procedure. 

Although AI tools are still developing, the regulations surrounding them are coming thick and fast. As these technologies evolve, so will the laws. Employers must stay up-to-date with AI guidelines at the state and federal levels and work with their legal teams to remain compliant. 

Anti-discriminatory, Civil Rights, and Data Privacy Regulations 

New AI guidelines are being established across the US. As organizations do their best to stay within the boundaries of these laws, they must also remember existing employment legislation. 

Regulations like the Civil Rights Act and the Americans with Disabilities Act prohibit discrimination of any kind against individuals based on race, color, religion, sexual orientation and identity, and disabilities. 

Organizations must know that utilizing AI within the workplace must comply with these laws. The EEOC has taken some steps to ensure that companies do not breach already-existing guidelines as they deploy AI in day-to-day operations. 

Some notable measures from the agency include issuing guidance on how the Americans With Disabilities Act applies to AI tools in employment decisions and launching an initiative to help businesses stay within the boundaries of the Civil Rights Act as they utilize AI. 

Aside from the anti-discriminatory laws, employers must also consider data privacy regulations since AI tools typically require employee data to assist with business-related decisions. Organizations must ensure that they not only inform and request consent from staff members about the information collected by AI technologies but also take robust steps to prevent unauthorized access to these pieces of data. 

Transparency Within the Workspace 

A common thread that runs through almost all regulations regarding AI in the US is the need for employers to inform their workers and prospective employees about the deployment of AI in day-to-day operations and hiring processes. 

For example, the recent guidelines from the White House on AI use in the office require employers to provide prior notice to staff about utilizing artificial intelligence in the workspace. 

However, the regulations go beyond simply informing employees about the latest AI tools that the company will incorporate into office operations. It also involves seeking input and feedback from workers regarding the design, development, testing, and use of artificial intelligence systems at work.

In addition, workplace AI tools must undergo regular independent audits, with the results made public, to evaluate the performance of the systems in line with employee rights and safety. 

In other words, transparency is a non-negotiable factor when using AI in the workplace, and employers must ensure there are no dark corners with how and why these tools are deployed. 

Final Though: Seek Expert Legal Counsel to Maintain AI Compliance With US Employment Laws 

Undoubtedly, AI is here to stay. However, government regulations will define how we use it in the workspace. Anti-discriminatory and civil rights laws already apply to these tools, but new guidelines are coming. 

While employers leverage AI for heightened productivity and efficiency, they must also take steps to stay compliant with the laws. Working with an expert legal team to review your company’s AI tools and the frameworks surrounding them is critical. 

You want to avoid potential discrimination or data mismanagement claims due to AI use in the workplace. We’re experts in US employment legislation at the Law Office of Sheri Oluyemi, including recent AI guidelines. Our team can help evaluate your company’s deployment of AI technologies to ensure you stay compliant with US federal and state regulations. Reach out to us today to schedule a free teleconference consultation.  

Summarizing the Department of Labor Guidelines for AI Use in Workplaces

May 8, 2025

AI is here to stay, but we won’t let it exist without some ground rules. You would recall that, in October 2023, President Biden issued an executive order directing the Department of Labor to create principles that determine how organizations develop and utilize AI in the workplace. 

 

The purpose of these regulations is to protect US employees from specific threats posed by artificial intelligence in the corporate world, especially the potential displacement of workers. Following President Biden’s directive, the DOL released the guidelines on May 16, 2024. 

 

This article closely examines these regulations and what they mean for employers in the United States.

DOL Principles for Developing and Deploying AI in America

The Department of Labor’s guidelines for AI under the Artificial Intelligence and Worker Well-being: Principles and Best Practices for Developers and Employers cover eight points. 

 

It’s critical to note that these principles aren’t focused only on utilizing AI in the workspace. Instead, they cover the entire lifecycle of artificial intelligence tools, including design, testing, and training.

 

That said, we outline the new regulations below:

 

  • Centering Worker Empowerment 

Organizations must seek timely, genuine, and regular input from employees and their representatives (especially those from underserved communities) about the design, development, testing, training, use, and oversight of AI tools meant for the office space. As part of this guideline, the DOL adds that companies must bargain in good faith on using AI in the workplace while negotiating with employee unions.

 

  • Ethically Developing AI

Employers must ensure that AI tools are designed, developed, and trained to protect the rights of their staff. Specific pointers are mentioned to enable organizations to abide by this guideline. For instance, developers of AI systems should create standards to ensure that AI tools protect employee civil rights and reduce any risk to staff safety while also meeting performance requirements. 

 

The DOL’s regulations also require creators of AI systems to conduct audits of the technologies and publish the results to enable employers to understand how trustworthy they can be. 

 

  • Establishing AI Governance and Human Oversight

Human oversight is crucial in using AI technologies, and the new guidelines require executives to develop governing structures that will provide guidance and coordination across the organization when it comes to deploying AI tools. According to the DOL, the governing systems must consider input from workers and their representatives in the decision-making process regarding AI systems. 

 

Furthermore, companies must not make decisions solely based on AI or data from these tools. Instead, there should be meaningful human oversight for any AI-supported decisions. 

 

  • Ensuring Transparency in AI Use

Businesses should be transparent to staff members, their representatives, and applicants about any AI tools utilized in the office. Employers must ensure that they inform these parties about prior use of the AI systems, the purpose of the technologies, how workers or job seekers will engage with them, and how they’ll inform decision-making. There should also be advanced disclosure of the data collected and stored by AI systems and how they’ll be utilized. 

 

  • Protecting Labor and Employment Rights

Utilizing artificial intelligence in the office space should not violate employees’ right to organize, health and safety rights, wage and hour rights, and anti-discrimination and anti-retaliation protections. In addition to this principle, workplace AI tools must not be used to reduce wages, break time, or other legal employee benefits. Companies must also audit AI technologies for any impact on employees based on race, color, national origin, religion, sex, disability, age, genetic information, and other protected bases.

 

  • Using AI to Enable Workers

The purpose of AI in the workplace should be to assist workers and improve job quality. Employers can use the Department of Commerce and the Department of Labor’s Good Job Principles as a guide to determine how to deploy AI in the office to enhance job quality for staff. Providing workers with hands-on training on artificial intelligence is crucial before fully implementing it in the office.

 

  • Supporting Workers Impacted By AI

One widespread worry with AI is the potential replacement of some roles in the corporate world. To mitigate these risks, the DOL requires employers to train staff members on using AI to complement their office responsibilities to avoid displacement. Retraining and reallocating employees displaced by AI to other roles within the company should also be a consideration. 

 

  • Ensuring Responsible Use Of Worker Data

Companies can sometimes input employee information into AI tools for business and hiring decisions. The DOL mandates that employers limit these data pieces as much as possible and use them only for legitimate business purposes. Steps should also be taken to prevent unauthorized internal and external access to staff data. In the case of a breach, organizations must immediately inform workers and their representatives about the event and possible steps taken to reduce the damage.

What the Department of Labor’s AI Guidelines Mean for Employers 

The DOL’s regulations seek to protect employee rights as AI becomes more common across US workplaces. Some crucial aspects of the new guidelines include reviewing AI systems for compliance with civil rights, anti-discrimination, and data privacy laws. 

 

With these new regulations in place, employers must work with legal teams to review current and future AI tools to adhere to the guidelines and other essential federal and state legislation. Providing employees with the required training to implement AI to complement their work and incorporating their feedback regarding using these tools can also protect businesses from crossing the boundaries of the law. 

 

At the Law Office of Sheri Oluyemi, we possess an in-depth legal understanding of the US employment landscape, and we can help your company review AI tools and policies to stay within the DOL’s new guidelines and other necessary laws. Reach out to us today to schedule a free teleconference consultation.  

What Are the Implications of Misclassifying Employees as Contractors Under the FLSA? 

April 16, 2025

All employees, except independent contractors and workers under the exempt category, qualify for overtime pay in America. However, business owners can misclassify a staff as an independent contractor to avoid paying the cost of working beyond the standard work hours. 

However, this move comes with some severe consequences. Back wages, IRS fines, and lawsuits are some potential issues organizations might face for classifying employees wrongfully. We dive into some of the implications of misclassifying staff as an independent contractor according to FLSA guidelines in this guide. 

Categorizing Workers as Independent Contractors – A Quick Look at the Economic Reality Test

Recently, the Department of Labor issued a final rule on how employers determine the individuals on their payroll who are independent contractors. These guidelines were simply a return to the Economic Reality test, which had been in place since the 1940s and was expanded by the Obama administration with the Administrator’s Interpretation 2015-1.

Under the Economic Reality test, organizations had to evaluate six factors to decide who qualified as an independent contractor. However, the Trump Administration replaced these factors with two new criteria under the 2021 IC Rule. 

Now, though, the DOL has reverted to the previous guidelines. Below are the six elements that determine if an employee falls under the independent contractor category based on the Economic Reality test: 

  • Opportunity for profit or loss based on the worker’s managerial skill
  • The degree of permanence of the work relationship
  • Investments by the worker and the potential employer
  • The extent to which the work performed is an integral part of the potential employer’s business
  • If the work performed demands specialized skill and initiative
  • Nature and degree of control exercised by the employer

Potential Consequences for Wrongfully Classifying an Employee as an Independent Contractor

Organizations that falsely classify employees as independent contractors to avoid paying overtime could face the following penalties:

Back Overtime Wages 

Based on the FLSA regulations, employers guilty of wrongfully classifying staff might end up paying back wages for overtime hours for two years. However, this timeline only applies if the misclassification isn’t intentional. Willful violation, on the other hand, comes with back wage payments up to three years. Liquidated damages equal to attorney fees can also be part of the penalties faced. 

Employee Benefit Repayments

Usually, misclassified workers aren’t losing out on overtime alone. They’ll likely have been denied employee benefits, like paid leave, retirement contributions, unemployment and health insurance, etc. These individuals can sue their employer to recover these benefits. 

IRS Penalties for Payroll Taxes

Payroll taxes, such as Medicare, Social Security, and federal and state unemployment taxes, are mandatory payments employers must make for all workers within their organizations. However, when employees are wrongfully classified, these taxes are often unpaid. 

As a result, the employer might be required to remit all back taxes owed, with interests often applied to the payments. Business owners can also face criminal charges, with fines rising to $1,000 for each misclassified staff and jail time up to a year. 

State-imposed Penalties 

Alongside facing penalties from the FLSA and IRS, you could also receive some sentences from the state. For instance, wrongfully classifying an employee as an independent contractor in Georgia attracts a fine of up to $7500 per misclassified staff if the organization has more than 100 workers. 

Final Thoughts: Comply with FLSA Regulations to Avoid e-state. For example, in Georgia, employers guilty of wrongfully classifying staff as independent contractors could pay a fine of up to $7500 per misclassified employee if the organization has 100 or more workers. 

Final Thoughts: Complying With FLSA Overtime Regulations to Avoid Costly Legal Battles 

Misclassifying employees as independent contractors has severe consequences, including tax penalties, fines, and possible jail time. Let’s not forget that you’ll likely be involved in lengthy lawsuits and suffer reputation damage. 

Considering the implications, it’s crucial to properly categorize every workforce member to avoid being on the wrong side of the law. 

Hiring an expert attorney to review your employee classification to ensure compliance with FLSA guidelines is a critical step. Our legal team at the Law Office of Sheri Oluyemi possesses an in-depth understanding of US employment laws. We can provide expert counsel to help keep your business within the boundaries of FLSA overtime regulations and avoid any potential lawsuits. Reach out to us today to schedule a free teleconference consultation.  

 

 

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Understanding the Laws Behind Employer Surveillance of Employees in Georgia 

March 12, 2025

Keeping an eye on employees makes sense for business owners. It’s important to ensure that your staff members spend work hours productively and aren’t involved in shady activities. But where do we draw the line? While it might seem logical to monitor employees in the workplace, company executives should also know that people have a right to some degree of privacy, even around the office. 

 

This article discusses employer surveillance in Georgia and provides insights into what the law permits to be recorded and what’s beyond boundaries. 

Can Employers Monitor Workers in the Workplace?

Yes, the laws in Georgia allow business owners to monitor employees around the workspace. That said, Georgia doesn’t have any state-specific regulations regarding employer surveillance. Instead, the state adopts the rules in US federal laws, like the Electronic Communications Privacy Act (ECPA). 

 

Based on this legislation, Georgia employers must seek staff consent before recording office activities. Usually, this happens through signed agreements. Also, surveillance can take different forms, including video cameras, audio recordings, and monitoring of email and internet activities. 

 

However, any monitoring by a business owner must be for legitimate business purposes. Organizations are also expected to have a robust privacy policy that explains the type of activities recorded, the use of the information, and the personnel that can access the data. Furthermore, privacy laws should include the type of surveillance the company utilizes. 

What Is Considered Illegal Workplace Surveillance in Georgia?

Although business owners are permitted to monitor members of their workforce, Georgia state laws prohibit doing so in locations where workers have a reasonable expectation of privacy. Such areas would include lactation rooms, restrooms, etcetera. 

 

The regulation also prohibits monitoring people’s activities when they’re not in public view without their consent. 

 

Monitoring personal data that has nothing to do with office duties is beyond the boundaries of the law, as well. In addition, since Georgia is a one-party consent state, business owners need one individual in a conversation to provide consent before they can record such interactions.

 

This rule allows an employer to possess business-related records of conversations with staff if they’re involved in the discussions or have approval from another party present. In cases where they’re not part of the interactions, making audio recordings without consent would be illegal. 

Potential Consequences for Invasion of Privacy During Employee Monitoring in Georgia 

Business owners can face the following consequences for invasion of privacy while monitoring employees in the workplace:

Lawsuits and Settlements Claims 

Employees can sue if they believe their employers have breached their privacy rights during workplace surveillance. These cases are usually civil lawsuits, with financial compensation for emotional distress being one of the most common verdicts. 

Fines and Possible Jail Time 

Under §16-11-62 of the Code of Georgia, eavesdropping, recording, transmitting, or distributing the conversation of another individual in a private setting without their consent is a felony that can result in a prison sentence of up to five years and/or a fine of up to $10,000.

Hire Expert Legal Counsel to Get Justice for Your Workplace Privacy Claim in Georgia 

Georgia state laws allow employers to monitor the activities of their staff. However, there are boundaries around how and where they can do this. Consent is necessary for surveillance, and monitoring must be for legitimate business purposes. Also, it cannot happen away from public view in places like restrooms.

 

Suppose your employer has breached the rules by recording you without consent or monitoring your private activities outside work. In that case, you must file a privacy lawsuit to get justice and protect other staff from such invasive behavior. 

 

Our team at the Law Office of Sheri Oluyemi can handle your claim and recover compensation from your employer for any damages caused. We possess in-depth knowledge of the US employment and privacy regulation laws and will leverage our expertise to build a robust case to defend your claim. Reach out to us today to schedule a free teleconference consultation.  

Sexual Harassment at Work: A Primer

September 3, 2024

Sexual harassment is an issue of severe concern across US workplaces. According to data from the Equal Employment Opportunity Commission, there were more than 98,000 workplace sexual harassment claims between 2018 and 2021.  

 

In fact, within that time frame, sexual harassment cases accounted for 27.7% of all harassment claims. When we discuss sexual harassment, it’s easy to think of pervasive and non-consensual sexual behavior. However, sexual harassment doesn’t need to be sexual in nature.  

 

Employment laws in the US define sexual harassment in broader terms that also include discrimination based on a person’s sex. For instance, offensive comments in the workplace about women are unlawful according to US legislation. This article dives into workplace sexual harassment in America, including behaviors that constitute sexual harassment and steps to take against the perpetrators.  

What Is Workplace Sexual Harassment?  

In broad terms, sexual harassment is discrimination based on an individual’s sex. It involves a wide range of behaviors and actions that don’t necessarily need to be sexual in nature. According to Title VII of the Civil Rights Act, the following actions are examples of sexual harassment: 

 

  • Unwelcome sexual contact, such as hugging, fondling, groping, and digital penetration 
  • Requesting for sexual favors 
  • Making jokes or stereotypical comments about someone’s sex or gender  
  • Spreading rumors about an individual’s sex life  
  • Making vulgar or lewd gestures  
  • Having conversations about sexual fantasies/stories in the workplace or other inappropriate settings  
  • Asking questions relating to sexual fantasies and preferences  
  • Sending unwelcome emails or notes, placing phone calls, stalking, and continuously requesting a date from someone who has previously declined  

 

The law also states that any individual, irrespective of sexual orientation, gender identity, or sex, can be the victim or harasser. In other words, it’s possible to suffer sexual harassment from an individual of the same sex. Also, the victim or harasser can be a co-worker, supervisor, or a third party not employed in the business organization (such as customers).  

Can Workplace Sexual Harassment Occur Outside the Office Area?  

Unwelcome and pervasive sexual advances and actions don’t need to happen in the office to classify as workplace sexual harassment. You can suffer sexual harassment outside the company space and after work hours.  

 

Inappropriate comments based on a person’s sex can come from colleagues and employers in a private message or email. They can also happen in non-work-related functions, such as parties and over a scheduled dinner with co-workers.  

 

As long as the unwanted sexual behavior comes from an individual you share a professional relationship with at work, it can be categorized as sexual harassment.  

Conclusion: What Can You Do As a Victim of Workplace Sexual Harassment?  

Sexual harassment can create an uncomfortable work environment for victims. It can also severely affect their mental and emotional well-being. If you’ve been a recent victim of sexual harassment in the office, you should report the incident to your company’s HR department immediately.  

 

Ensure you provide the HR manager with a comprehensive document of the incident, including the date, time, and inappropriate actions. Usually, the department will conduct an investigation and take the necessary action against the perpetrator.  

 

If the company fails to take action against the harasser, you can file a complaint with government institutions like the Equal Employment Opportunity Commission (EEOC). The EEOC will review your case and issue a Notice of Right to Sue if they deem it valid.  

 

Once you’ve been granted permission to sue your harasser, you’ll need the services of an expert sexual harassment lawyer to pursue your claim and get justice against the guilty party.  

 

At the Law Office of Sheri Oluyemi, we possess an in-depth understanding of US employment law. Our experienced legal team will evaluate your sexual harassment claim to determine the best course of action against the perpetrator. Please request a free teleconference consultation today, and let’s defend your rights!  

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