Overtime Violations at Pennsylvania Company
After an investigation was conducted by the United States Department of Labor’s Wage and Hour Division, the United States District Court for the Eastern District of Pennsylvania has an entered an order requiring Fox Bindery Incorporated which is located in Lansdale, Pennsylvania to pay $274,183 to employees for overtime violations as well as an additional $274,183 as “double damages” to both current and previous workers. As a result of the violations, Fox Bindery is also required to pay a $50,000 civil penalty as the result of its willful violations.
How the Violations in Question Occurred
The investigation into Fox Bindery Incorporated revealed that the company has committed numerous minimum wage, overtime, and record keeping violations of the Fair Labor Standards Act. The investigation focused on March 11, 2013 to March 6, 2016, during which time Fox Bindery Incorporated has been determined to have used temporary workers to fill laborer jobs. Fox Bindery Incorporated and the employment agencies jointly hired the temporary workers, but the temporary agencies then knowingly failed to compensate workers for overtime worked over 40 hours a week. Employees who performed work for Fox Bindery Incorporated were also paid less than the established minimum wage in the area of $7.25 an hour. Even though Fox Bindery Incorporated received detailed invoices from the temporary staffing agency, no efforts were made by the company to pay workers.
The Future of the Case
The judgment against Fox Bindery Incorporated will likely help to ensure that workers receive the wages that they are owed. In addition to being held responsible for this violation, Fox Bindery Incorporated has also stated that it has agreed to modify its businesses practices to comply with federal regulations.
Salary NOT Exempt
Even if a worker is paid a salary, the employee may still be entitled to overtime. Employers often try to skirt the overtime laws by classifying workers as salary exempt. However, just paying an employee a salary and classifying them as “overtime exempt” does not make an employee legally exempt from overtime. In order to be “exempt from overtime” employers must show that the worker meets each of the federally mandated exemption requirements. Ultimately, the categories of overtime exemptions are very fact-specific and require consultation with an overtime attorney.
Is Your Employer Violating Wage or Overtime Violations
If you are a worker who has discovered overtime or minimum wage violations, it is important to conduct an attorney who handles wage and overtime claims for employees. Unfortunately, each year a large number of workers are not adequately compensated by their employer. If you are a worker who was not paid overtime or paid less than is required by federal or state regulations, it is important to quickly assert your rights as a worker.