Wage and Overtime Class Action Lawsuits

There are a variety of different wage laws and overtime laws throughout the United States that have been enacted by the federal government or individual state governments. Labor laws salary must be followed by each employer across the country or they will face serious penalties and fines along with class action lawsuits being filed against them by employees. Employees, as detailed by the contract they sign with an employer, are entitled to wages and overtime payment from their employer as permitted by salary employment law, if they work the required amount of forty hours in a workweek. Overtime is defined as any hours worked over 40 hours in one workweek. The Fair Labor Standards Act of 1937 legally forces employers to pay their employees one and a half times an employee’s regular wage for every overtime hour worked in one week.

Are there Grounds for a Lawsuit?

Before an employee decides to file a class action lawsuit against his or her employer, they should first make sure that there are grounds for a lawsuit via labor law salary. This can be done with the assistance of an attorney. An attorney experienced in the area of wage and overtime disputes will be able to answer any questions regarding state and federal laws about wages and overtime pay. The attorney will also be able to determine whether or not their client has a case against their employer by analyzing the situation at the office and whether or not it violates any laws. Once the lawyer determines there is a case for the client he or she will then file a complaint with the state Department of Labor and the local court. The lawyer will have to determine the following before filing the class action lawsuit against the employer:

• Were any terms of the Fair Labor Standards Act of 1937 violated by the employer?
• Was the employee exempt from overtime pay based on state laws?
• Did the employee actually work more than 40 hours during the workweek?
• Did the employee properly file their work hours when checking out of the office each day?
• Did the employer fail to report an employee’s overtime hours to the payroll department?

Past Class Action Lawsuits

Class action lawsuits that cover wage disputes and overtime disputes are common throughout the United States workforce today. These types of lawsuits cost companies millions of dollars in profit and sometimes the lawsuit could have been avoided if the company had just paid their employees for a handful of minutes worked each day. One such example involves Perdue Farms Inc. Perdue did not pay its employees for the time it spent them to put on, take off, and clean their sanitary equipment on a daily basis. This lawsuit cost Perdue $10 million. Other previous class action lawsuits covering wages and overtime payment include the following:

• Citigroup Global Markets paid out $98 million
• UBS Financial Services paid out $89 million
• United Parcel Service paid out $87 million
• IBM paid out $65 million
• Morgan Stanley paid out $42.5 million
• 24 Hour Fitness paid out $38 million
• Merrill Lynch paid out $37 million
• Siebel Systems paid out $27.5 million
• Sears Roebuck paid out $15 million
• Electronic Arts paid out $14.9 million

How Employers Can Avoid Class Action Lawsuits

Employers can avoid class action lawsuits regarding wages and overtime payment problems by double-checking their records on a daily basis. Employers can also make sure that their employees are effectively reporting their overtime hours worked in one week. Employers should also properly train their employees on how to effectively clock in and out of work to make sure that they are paid properly.

Is a Lawyer Needed?

An experienced lawyer working in the business industry will be able to help clients determine whether they should file a class action lawsuit against an employer. If you have been denied wages or overtime pay by your employer, you should contact an attorney as soon as possible to begin building your case.