Southern California Worker Packs UPS with $100 Million Overtime Pay Class-Action Lawsuit
August 21, 2009
Southern California resident Laura Meza, an employee of United Parcel Service (UPS), sued the package shipping company on Wednesday, seeking more than $100 million in compensation. Meza is accusing UPS of not paying overtime wages to account managers across the country who execute door-to-door product pitches to businesses.
The class-action lawsuit filed by lawyers for Meza in the U.S. District Court for the Southern District of California, state that UPS violated the U.S. Fair Labor Standards Act (FLSA) by not compensating the account managers for overtime wages. UPS account managers often work sixty hours a week, but are only paid for forty hours a week with no overtime rates. Meza also claims violation of California's state wage and hour laws for failing to keep detailed records of the hours these employees work, and for not providing necessary rest breaks and mandatory meals.
Meza, an account manager in Orange County, California, claims that UPS misrepresents the role of account managers, making them part of a defined sales structure, and therefore exempt from overtime pay. The lawsuit details that account managers do not make sales or perform managerial work, so they shouldn't be categorized as outside salespersons or administrative employees. The main responsibility of the manager is to deliver the UPS promotion material to local businesses in designated areas.
UPS does pay overtime to its drivers and sorters, through an agreement made between the company and the workers' union. The Associated Press reports that UPS has around 415,000 employees worldwide. The account managers are part of a sales force team of more than 5,000 people. Meza seeks to represent the thousands of account managers nationwide in this lawsuit who are in the same position that she is in-overworked and underpaid.
The lawsuit seeks damages of more than $100 million for uncompensated overtime, including all damages permitted by California and federal wage and hour laws. As a class-action lawsuit, it also seeks to represent other UPS employees in similar positions.
According to reports, the Atlanta-based UPS holds firm to the company's established sales compensation structure-where these account managers are classified as exempt and not subject to overtime.
UPS is known as being the largest shipping carrier in the world.
RPT-UPS worker sues company for overtime pay, Reuters, August 18, 2009
UPS sued for $100M in OT pay, San Francisco Business Times, August 20, 2009
UPS socked with $100M overtime lawsuit, Washington Post.com/AP, August 19, 2009
San Diego Law Firm Files Class Action Lawsuit Against UPS, I-newswire.com August 20, 2009
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