NEW YORK — Skycaps at John F. Kennedy International Airport in New York will receive payouts from a nearly $1 million settlement with their employer. Allstate Maintenance LLC, the contractor working for JFK International, was accused of failing to meet minimum wage requirements for the last eight years. Of the nearly $1 million settlement, $625,000 is for restitution and $300,000 is designated for damages. The amounts will be shared among the skycaps. The settlement will resolve the wage complaint and sets up requirements and systems for future compliance with state and federal wage laws.
The Contract Violations
After several workers contacted the Service Employees International Union (SEIU) Local 32BJ, the group that has been organizing airport employees, that they were not earning at least minimum wage, the state began investigating. The investigation uncovered information showing that between 2008 and 2014, skycaps working for Allstate earned as little as $3.90 an hour. This is significantly below the federal minimum wage and the New York minimum wage. For reference, the federal minimum wage in 2008 was $5.85, and $7.15 in New York. The current minimum wages are $7.25 and $8.00 respectively.
Skycaps generally receive tips that can offset employer wages, which is the rationale behind lower wage requirements for tipped employees. Unfortunately, even if the skycaps were classified as tipped employees, Allstate failed to meet New York state minimum wage requirements. The wage for non-food service tipped employees was $4.85 in 2008 and is now $5.65 in New York. The federal minimum wage has not changed over the last eight years and is $2.13. However, Allstate failed to classify them as tipped employees and failed to qualify for tip credit. This failure to classify the skycaps as tipped employees entitled the skycaps to the full minimum wage.
State and Federal Claims
In many cases, when employees have minimum wage or overtime claims against their employer, their claims can be brought under both state and federal law. The Fair Labor Standards Act (FLSA) sets the minimum standards employers across the country must meet regarding wages and hours. States may set higher standards, as New York has with its tipped and non-tipped minimum wage, but they cannot be less than the FLSA standards. The fact that state and federal requirements can differ allows employees the opportunity to gain relief on two different levels. This is beneficial if they lose or have their claim dismissed in federal or state court.
However, as in this case, some violations are state or federal law specific. For instance, the skycaps’ $3.90-per-hour wage would have met FLSA $2.13 tipped minimum wage requirements if they had been properly classified. But that same wage is well below any of New York’s minimum wage, regardless of classification.
Determining whether you have a state, federal, or state and federal wage and overtime claim can be complicated, but our experienced team of overtime pay lawyers can help. Call today at (855) 754-2795 to discuss your situation. Or complete the Free Unpaid Overtime Case Review form and our skilled legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.