Many of the Checkers and Rally’s employees fall under the non-exempt category of employment and MUST be paid overtime wages according to the guidelines laid out in the Fair Labor Standard Act (FLSA). The FLSA sets the overtime rate for non-exempt employees at time and one-half their standard rate of pay for any time worked over 40 hours in a single week.
The FLSA regulations do not apply to “administrative” or “professional” employees due to exemptions preventing specific categories of employees from receiving overtime pay.
Exemptions are not based entirely on one’s job title, however. Whether or not an employee should receive overtime pay is calculated by the hours worked, the rate of pay, the job duties, and even the job description.
It’s always a good idea to speak with an attorney with experience in overtime pay laws due to issues with additional state laws governing overtime pay. These laws sometimes overlap federal laws and further complicate or contradict the FLSA.
What is Checkers and Rally’s?
Founded in 1986 as Checker’s, Checkers Drive-In Restaurants, Inc is one of the largest chains of double drive-thru restaurants in the United States. Originally founded as two distinct chains, through a series of mergers and acquisitions Checkers and Rally’s became consolidated under the same corporate umbrella registered in Tampa, FL. Operating in 28 States with 784 locations, Checkers and Rally’s specializes in hamburgers, hot dogs, French fries, and milkshakes. Checkers and Rally’s is currently owned by private equity firm Oak Hill Capital Partner, and utilizes a hybrid franchise-corporate licensing system. The mid sized fast-food chain is recognized for its prolific advertising and red checkered sigil bearing the company name. A rising star in fast-food, Checkers and Rally’s is certain to remain squarely within the public eye in the years to come.
Can Checkers and Rally’s Employees Earn Overtime Wages?
Numerous non-exempt Checkers and Rally’s employees may be required to start before their shifts or even work after their shifts finish off the clock. It is not uncommon for employees to work double shifts as well. Because of this, if many Checkers and Rally’s employees exceed 40 working hours in a single week, they should receive overtime pay.
Employers have been known to illegally misclassify positions to avoid paying overtime. For instance, Checkers and Rally’s shift or location managers may have been labeled “managers” with the goal of marking them exempt from overtime pay. However, these employees are in fact non-exempt because of the nature of their job duties.
Often companies label employees as managers even though they do not fill vital roles for the business. The FLSA dictates that “managers” must have specific abilities, for instance, hiring or firing employees, making schedules, or completing other tasks that are essential to the running of the business. Typically these employees do not perform these duties and are instead only labeled as managers for employers to save money by avoiding paying overtime.
Another unlawful practice that the Checkers and Rally’s may perform is having employees clock in before a shift or asking them to stay after a shift without compensating them. This practice of manipulating time cards to keep payroll costs down is a violation of the FLSA and can result in a lawsuit.
How Can a FLSA Lawyer Help You
An experienced lawyer can analyze your case and see if you are entitled to lost overtime wages from Checkers and Rally’s by evaluating how state and federal laws apply to your situation.
Does Checkers and Rally’s Have to Pay Overtime Wages to Employees?
For the most part, Checkers and Rally’s must pay overtime to non-exempt employees who work more than 40 hours in a week as long as they are not excluded by the FLSA. However, these exemptions become more complicated by some states that have additional laws governing them.
If you feel like you have been denied overtime wages, then it is in your best interest to consult an attorney with FLSA experience and knowledge of state overtime laws.
Are There Other Overtime Pay Lawsuits Involving Checkers and Rally’s?
Here are a few examples from the many previous lawsuits that have been issued against other employers for failing to pay overtime wages:
Justia lists at Checkers and Rally’s as a defendant in at least one lawsuit since 2015
Glassdoor, a popular employee testimonial website, lists numerous negative reviews alleging issues with respect to workforce compensation structures
If you feel as though Checkers and Rally’s or any another employer has denied you overtime wages, you could have a case. Please get in touch with the Lemberg Law legal team. Complete our form for a FREE case evaluation, or call 844-685-9200 NOW. Lemberg Law will evaluate your case as see if you are eligible to receive lost overtime wages as a non-exempt employee.
About the Author:
Sergei Lemberg is a lawyer whose practice focuses on consumer law, class actions and personal injury litigation. He has been repeatedly recognized as the “most active consumer attorney” in the country. In 2020, Mr. Lemberg represented Noah Duguid in the United States Supreme Court in the case entitled Duguid v. Facebook. He is the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.