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Temp Agency to Pay Nearly $250K for Wage and Hour Violations, Employee Misclassification

February 15, 2012

Our dedicated Orange County labor and employment lawyer team, based in Costa Mesa, California and led by managing attorney Vincent Howard, is constantly looking at key employment issues that are plaguing the workplace throughout California and across the country--especially when it affects the way workers are being treated in regard to wages and fair pay.

As Vincent Howard has previous reported in an Anaheim wage and hour attorney blog, the Wage and Hour Division of the U.S. Department of Labor, (DOL), continues to aggressively pursue employers who do not properly compensate employees for all hours worked. For example, a recent Wage and Hour Division investigation in Dallas, Texas, revealed that 252 temporary employees from The Temp Team were forced to work as many as 79 hours per week, without receiving overtime payment--a violation of the Fair Labor Standards Act (FLSA).

The employees were reportedly placed at local businesses and paid "straight time" wages, rather than the FLSA overtime requirement, which is one and one half their normal pay rates for work hours that total over forty in a work week. Under the FLSA, employees who are covered by the act must be compensated with the federal minimum wage, $7.25, for all hours worked in a week, plus overtime compensation, which includes any bonuses, incentive pay and commissions.

The DOL investigation also found that the company engaged in employee misclassification by incorrectly classifying two temporary employees as exempt from the FLSA overtime provisions--so both employees failed to receive any overtime compensation or protections under the wage and hour act. The company was also charged with violating the FLSA by failing to maintain accurate time and payroll records for all employees.

The Temp Team provides staffing services through recruiting, placing and hiring temporary employees in companies throughout the country, and agreed to pay $244,104 in back wages. The company also agreed to properly classify employees and to maintain proper record-keeping provisions in the future.

As our Carson employment attorney blog has previously discussed, every year, the DOL collects overtime payment and back wages for nearly 220,000 individuals who have experienced wage and hour violations in the workplace. In 2010, employers reportedly paid $176 million in employee back wages, and in the past five years, employers have paid nearly $925 million in back wages and overtime compensation to around 1.2 million workers.

In Brea, Buena Park, and Costa Mesa, contact Vincent Howard and our Orange County wage and hour legal team at Howard Law, PC today.

Temporary staffing agency in Dallas to pay more than $244,000 in overtime back wages following US Labor Department investigation, The U.S. Department of Labor Press Release, January 10, 2012

Related Web Resources:

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

Department of Labor (DOL): Wage and Hour Division (WHD)

Related Blog Posts:

Pulte Construction Subcontractors Fined for Employee Misclassification, California Employment Lawyers Blog, February 14, 2012

Audit Associates Gain Certification for Conditional Collective Action--in Employee Misclassification Lawsuit, California Employment Lawyers Blog, January 10, 2012

DOL Wage and Hour Investigation Forces South Florida Restaurants To Pay Nearly $700K in Back Wages, California Employment Lawyers Blog, December 5, 2011

DOL Continues Long Island Wage and Hour Enforcement Initiative to Stop FLSA Violations, California Employment Lawyers Blog, December 3, 2011

Trucking Companies Settle Wage and Hour Lawsuit for Over $225K, California Employment Lawyers Blog, November 29, 2011

Tennessee Restaurants To Pay Overtime Back Wages for Willful and Repeated FLSA Violations, California Employment Lawyers Blog, November 11, 2011

DOL Continues to Track Down Federal Wage and Hour Law Violations in the Workplace, California Employment Lawyers Blog, September 8, 2011

CA Wage and Hour Lawsuit Settlement--66 Japanese Employees to Receive $145K in Overtime Back Wages, California Employment Lawyers Blog, August 22, 2011

Another DOL Investigation Brings Restaurant Employees $275K in Overtime Back Wages, California Employment Lawyers Blog, July 18, 2011

"White Collar" Exemptions under the FLSA , California Employment Lawyers Blog, November 12, 2010

Contractor Accused of Cheating Workers and Government By Violating Wage and Hour Laws, California Employment Lawyers Blog, May 11, 2010