Hutco Staffing Agency Will Pay Around $2M in Overtime Back Wages to Workers
May 6, 2013
Costa Mesa-based attorney Vincent Howard has been following a recent U.S. Department of Labor (DOL) investigation, after the DOL's Wage and Hour Division (WHD) found that Hutco Inc., an industrial services staging company, violated the Fair Labor Standard Act's (FLSA) overtime requirements by using payment and record-keeping practices that were evasive.
According to the WHD investigation, the company was found to have engaged in massive overtime violations in six of the company locations. Hutco reportedly mislabeled certain wage payments as "per diem" payments, and failed to include these wages when calculating the employees' overtime premiums--denying the workers with overtime payment. This illegal pay practice resulted in record-keeping violations of the FLSA, regarding the accuracy of the actual hours each employee worked, and the actual wages paid.
The WHD's acting deputy administrator, Mary Beth Maxwell, stated that temporary workers often run the risk of failing to receive their legal right to proper wages and legal protections provided to them under federal law. According to the WHD, employers are not allowed to dismiss their legal responsibility to compensate workers with overtime by using improper practices that deny these workers their rightful wages, and break federal labor laws.
Under the settlement, Hutco has agreed to pay 2,267 workers with $1,916,850 of back wages and will comply in the future with federal law. The company must also take measures to avoid future violations, and identify and pay workers who qualify for actual per diem payments, pay proper overtime payments to workers, and ensure that the per diem compensation is not automatically taken out of overtime calculations. Employees must also be informed about their compensation and employment terms and conditions, and Hutco must keep accurate payment records.
As Vincent Howard regularly discusses, under the FLSA, covered employees are to be compensated with the minimum wage of $7.25 for every hour worked in a forty hour workweek, and receive overtime compensation of one and one-half their regular compensation rates for any hours worked over forty--including bonuses, work commissions, and incentive payment.
If you have experienced an Orange County, California wage and hour issue in the workplace, call Howard Law's managing attorney Vincent Howard for a free consultation at 1-800-872-5925. Our legal team at Howard Law, PC can help resolve your wage and hour dispute.
Major staffing agency Hutco to pay nearly $2 million in overtime back wages to workers following US Labor Department investigation, U.S. Department of Labor Press Release, May 6, 2013
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