Company Shortchanges Workers Out of Overtime to the Tune of $1.8 Million
Workers were misclassified as exempt from overtime
Working more than 40 hours per week without extra compensation is part of the deal if you’re an exempt employee.
But what if you suspect that you’ve been misclassified? Then, having to work additional hours can really sting.
Unfortunately, misclassifying employees – whether it’s done intentionally or not – can mean that employees are shorted out of their rightfully earned pay. However, it’s important to know that there are legal remedies if you’re not being paid in accordance with the law.
Let’s take a look at a recent instance in which misclassified workers stood up for their rights.
Working for free
Analysts at Citigroup Technologies Inc. were used to working overtime. Unfortunately for the 882 staffers in one division of the company, those overtime hours didn’t amount to additional pay.
Workers in this group were generally salaried and classified as exempt from overtime. However, several of the employees suspected that their classification was incorrect and that they should’ve been eligible for overtime compensation.
Several workers sought legal representation and filed a complaint. A Department of Labor (DOL) investigation was launched and the company found its pay practices under the microscope.
The DOL found that the company had improperly applied the administrative exemption from overtime to the analysts who complained. The company also failed to maintain time records for this group of employees, which was a violation of the law.
The company was forced to re-classify the employees and pay them back wages of more than $1.8 million. The company must also pay $97,680 in civil penalties.
(For more information, see this press release from the DOL.)
What You Need to Know
This case contains several important takeaways for employees, including:
- You don’t have to be an hourly employee in order to be eligible for overtime. Under the Fair Labor Standards Act (FLSA), some salaried employees may also be entitled to time-and-a-half for any hours worked over 40 in a given week.
- Classification as exempt or non-exempt is not determined by job title alone. Rather, the FLSA directs that classification be determined by a person’s job duties and salary.
Note: The FLSA overtime regulations have recently been updated. The new regulations go into effect on December 1, 2016. See more here.
Contact the Murphy Law Group Now for a Free Consultation
If you believe that you’ve been improperly classified, it’s a good idea to speak to an attorney to find out about your rights under the law.
Email us at murphy@phillyemploymentlawyer.com, or call (267) 273-1054 for a free consultation.