DOL Recovers nearly $100K in Back Wages for California Field Technicians
May 17, 2011
Our Santa Ana labor and employment attorneys recently discussed a class action wage and hour lawsuit involving workers who are suing their former employer, Chef Geoffrey Zakarian, for $1 million in damages--who in turn filed for bankruptcy over the lawsuit.
In related employment news, a California-based telecommunications provider, Covad Communications, has paid nearly $100,000 in back wages to 33 field technicians in California cities like Santa Ana, Chula Vista, Compton, Los Angeles, and other U.S. cities--who were employed by the now defunct contractor Certified Securities Integrators, Inc. (CSI), who filed for bankruptcy in December of 2010.
After an investigation by the U.S. Department of Labor, CSI was found to be in violation of the overtime and minimum wage provisions of the Fair Labor Standards Act, (FLSA). According to the DOL, it is important for workers to know that an employer's bankruptcy doesn't necessarily mean that they will be left unpaid for their work.
The DOL reportedly found that as the majority of CSI's business was provided by Covad Communications, Covad was found to be a joint employer, even though a contract between the two companies stated that Covad was independent. The DOL found the Covad was therefore responsible for paying the technicians the full amount due to the technicians under the FLSA, which requires that covered employees are paid at least $7.25, the federal minimum wage for any hours worked, plus one and one-half their regular pay rates for all hours worked beyond 40 in a workweek, including bonuses, incentive pay, and commissions.
In Long Beach, Fullerton, South Gate, and Oceanside, California, contact our labor and employment attorneys at Howard Law, PC today.
US Department of Labor recovers nearly $100,000 in back wages for 33 communications workers in California, 9 other states, U.S. Department of Labor Press Release, April 28, 2011
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