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DOL's Wage and Hour Division Investigation Leads to Lawsuit Settlement--Teleperformance to Pay Nearly $2M in Employee Back Wages

May 19, 2010

As Santa Ana, California Employment Attorneys, we have been following the recent lawsuit settlement, where Teleperformance USA, a telephone call center based in Salt Lake City, Utah has paid nearly $2 million in back wages to 15,862 workers for violating overtime laws under the Fair Labor Standards Act, as well as incorrectly classifying employees--a topic our attorneys discussed in a recent blog.

This lawsuit settlement reportedly came as a result of an investigation, led by the U.S. Department of Labor's Wage and Hour Division. Labor Secretary Hilda L. Solis claimed that when employers don't pay workers their legally entitled overtime wages, the Labor Department won't hesitate to step in to enforce federal law. Solis stated that these workers are entitled to receive payments of their back wages that they earned under federal law.

According to the Department of Labor (DOL), Teleperformance USA, a company that provides customer service over the phone to companies like Verizon Wireless, Sprint Communications, and Dell Computers, among others, reportedly violated federal overtime laws by failing to compensate employees for all hours worked, by neglecting to pay for breaks that were less than 30 minutes long, and by failing to pay workers whose shifts had already started and were forced to wait for work areas to become available. A small group of employees were also reportedly misclassified as "exempt" under the FLSA.

As our attorneys reported in a recent blog entry, under the FLSA, employees should be paid no less than the federal minimum wage for all hours worked, which is currently $7.25 per hour. Workers are also required to be paid time and one-half their regular rate payments when working over 40 hours in a single week. Employers are also required to maintain accurate records or all employee wages, hours worked, as well as other conditions of employment.

In cities in Orange County and throughout Southern California, our Anaheim-based Labor & Employment Attorneys know how to find the best solution to your wage and hour employment issue. Contact Howard Law, PC today.

Salt Lake City-based Teleperformance USA Pays Almost $2 Million in Back Overtime Wages Following US Department of Labor Investigation, PR Newswire/U.S. Department of Labor Press Release, May 19, 2010

Related Web Resources:

United States Department of Labor

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)