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Workers File $60M Lawsuit Against Blackwater/Xe for Employee Misclassification

June 18, 2011

Our attorneys recently posted a Long Beach, California employment lawyers blog, discussing employment misclassification in the workplace and the importance of understanding the difference between an employee's exempt or non-exempt status--as the misclassification of an employee could lead to violations of the Fair Labor Standards Act (FLSA).

In related news, Xe Services, formerly known as Blackwater, has been sued in a $60 million class-action lawsuit--where 3,000 former employees of the security and training company claim that they have been misclassified and therefore deprived of important employee benefits.

Under the lawsuit, former workers who have been employed by the company in Afghanistan, Iraq and other countries, are accusing Xe of misclassifying workers as independent contractors instead of employees, to avoid providing health, disability and pension plans, paying Social Security taxes, and contributing to state unemployment funds--all required for covered employees under the FLSA.

According to the lawsuit, many workers have come home from war zones with physical or psychological wounds and are being denied important health care because they are being improperly classified as independent contractors.

This is reportedly the second time the company has been in hot water for employee misclassification. In 2007 a congressional committee chairman reportedly accused Blackwater of tax evasion for not properly classifying security workers as covered employees.

In Westminster, Chino Hills, and Fullerton, California, contact Howard Law, PC today.

Ex-Blackwater/Xe workers file $60M class action lawsuit, Hampton Roads.com, June 9, 2011

Related Web Resources:

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

Related Blog Posts:

Court Awards Over $200K to Security Guards in Employment Misclassification Lawsuit Resolution, California Employment Lawyers Blog, June 14, 2011

Strip Club Violates FLSA--Judge Rules Exotic Dancers are Not Independent Contractors, California Employment Lawyers Blog, May 27, 2011

DOL's Smartphone App Could Reduce Wage Theft, Overtime Disputes, California Employment Lawyers Blog, May 25, 2011