WAGE AND HOUR DEMAND LETTER
State of Alabama
Fair Labor Standards Act Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Alabama ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Alabama State Bar Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective/class action contemplated]
Demand for Unpaid Wages Under FLSA
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO FRE 408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
Please direct all further communications regarding this matter to our office.
I. ALABAMA-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Alabama is one of five states without a state minimum wage law. Therefore, all minimum wage and overtime claims must be pursued under federal law, specifically the FLSA. However, Alabama employers remain fully subject to all FLSA requirements.
Key Legal Framework:
| Category | Alabama/Federal Requirement | Citation |
|---|---|---|
| Minimum Wage | $7.25/hour (federal FLSA) | 29 U.S.C. Section 206 |
| Overtime | 1.5x regular rate after 40 hours/week | 29 U.S.C. Section 207 |
| Tipped Minimum | $2.13/hour (with tip credit) | 29 U.S.C. Section 203(m) |
| Youth Minimum | $4.25/hour (first 90 days, under 20) | 29 U.S.C. Section 206(g) |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
| Breach of Contract | 6 years | Ala. Code Section 6-2-34 |
| Fraud | 2 years | Ala. Code Section 6-2-38 |
C. Alabama Wage Payment Requirements
While Alabama lacks a comprehensive wage and hour statute, certain payment requirements exist:
Wage Payment Timing:
- Alabama Code Section 25-4-4: Employers must pay wages at least twice per month, unless exempt
- No specific final paycheck timing requirement under Alabama law
- Federal requirements apply for covered employers
Payroll Deductions:
- Alabama follows common law principles regarding authorized deductions
- Deductions cannot reduce wages below minimum wage
- Written authorization generally required for non-tax deductions
D. Enforcement Mechanisms
Administrative:
- Alabama Department of Labor: Limited wage claim enforcement authority
- U.S. Department of Labor, Wage and Hour Division (Birmingham District Office): Primary enforcement for FLSA claims
- Filing Complaint: WHD Form WH-211 or online at dol.gov/agencies/whd
Private Right of Action:
- FLSA: Employees may bring private suit under 29 U.S.C. Section 216(b)
- Collective action mechanism available
- No state private wage claim statute
E. Tip Credit Rules (Alabama/Federal)
Alabama follows federal tip credit rules:
| Requirement | Standard |
|---|---|
| Cash wage minimum | $2.13/hour |
| Tip credit maximum | $5.12/hour |
| Total must equal | $7.25/hour minimum |
| Notice required | Yes, before taking credit |
| Tip pooling | Valid only among customarily tipped employees |
| Employer tip retention | Prohibited |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Alabama. During this employment, [Company Short Name] violated federal wage laws by:
[ ] Failing to pay the federal minimum wage of $7.25 per hour required under the FLSA
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to FLSA protections
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] On-call time
[ ] Making unlawful deductions that reduced wages below minimum wage
[ ] Unlawful tip pooling or tip credit violations
[ ] Piece-rate violations
The willful nature of these violations entitles our client to the extended three-year statute of limitations under the FLSA and liquidated (double) damages.
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Alabama] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly / Semi-monthly / Monthly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip violations, etc.]
IV. LEGAL ANALYSIS
A. Fair Labor Standards Act Coverage
1. Enterprise Coverage
[Company Short Name] is subject to the FLSA because it is an enterprise engaged in commerce with annual gross sales of at least $500,000. 29 U.S.C. Section 203(s)(1)(A).
2. Individual Coverage
Alternatively, our client was individually engaged in interstate commerce because [describe activities affecting interstate commerce, e.g., handling goods that moved in interstate commerce, making phone calls or emails to out-of-state locations, using credit card machines, etc.].
B. Minimum Wage Violation (29 U.S.C. Section 206)
The FLSA requires covered employers to pay employees at least $7.25 per hour for all hours worked. By [describe violation], [Company Short Name] failed to pay our client the minimum wage.
C. Overtime Violation (29 U.S.C. Section 207)
The FLSA requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek.
Our client worked an average of [X hours] per week. [Company Short Name] failed to pay overtime compensation for an average of [X overtime hours] per week.
D. Willfulness
[Company Short Name]'s violations were willful under McLaughlin v. Richland Shoe Co., 486 U.S. 128, 133 (1988), as demonstrated by:
- [Evidence of willfulness]
E. Liquidated Damages
Under 29 U.S.C. Section 216(b), our client is entitled to liquidated damages equal to the amount of unpaid wages, effectively doubling recovery.
V. DAMAGES CALCULATION
A. FLSA Damages
Relevant Period: [Start Date - 3 years prior to anticipated filing] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Unpaid Minimum Wage
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
3. Off-the-Clock Work
| Activity | Hours/Week | Rate | Weeks | Total |
|---|---|---|---|---|
| [Pre-shift work] | [X] | $[X.XX] | [X] | $[Amount] |
| Off-the-Clock Subtotal | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| FLSA Unpaid Wages | $[Amount] |
| FLSA Liquidated Damages (Equal Amount) | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Collective Action Exposure
If this case proceeds as an FLSA collective action:
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Liquidated Damages | $[Amount] | [X employees] | $[Amount] |
| Collective Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Liquidated damages
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] United States District Court for the Northern District of Alabama
[ ] United States District Court for the Middle District of Alabama
[ ] United States District Court for the Southern District of Alabama
The Complaint will seek:
1. Unpaid minimum wages under 29 U.S.C. Section 206
2. Unpaid overtime under 29 U.S.C. Section 207
3. Liquidated damages under 29 U.S.C. Section 216(b)
4. Attorney's fees and costs under 29 U.S.C. Section 216(b)
5. Certification as a collective action under 29 U.S.C. Section 216(b)
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior DOL investigations
[ ] Tip records (if applicable)
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Federal Rule of Evidence 408 and applicable Alabama evidentiary privileges.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[Alabama State Bar No.]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
ALABAMA-SPECIFIC PRACTICE NOTES
[ ] No State Minimum Wage Law: Alabama is one of five states with no state minimum wage, so all claims rely on FLSA
[ ] Limited State Enforcement: Alabama Department of Labor has minimal wage claim enforcement; use DOL-WHD
[ ] Right to Work State: Alabama Code Section 25-7-30 et seq.; union-related issues may arise
[ ] At-Will Employment: Alabama follows at-will doctrine; termination for raising wage claims may support retaliation claim under FLSA
[ ] Federal Court Venue:
- Northern District (Birmingham): Most of northern Alabama
- Middle District (Montgomery): Central Alabama
- Southern District (Mobile): Gulf Coast region
[ ] Collective Action: FLSA Section 216(b) is primary mechanism; no state class action for wage claims
[ ] DOL Contact: Birmingham District Office covers Alabama
- Address: 950 22nd Street North, Suite 601, Birmingham, AL 35203
- Phone: (205) 731-1305