More Wage & Hour Settlements
Wage and hour claims continue to dominate the headlines . . .
Fastenal Pays $10 Million
Fastenal Co., a construction supply distributor, agreed to settle overtime claims for $10 million. Employees in California, Oregon and Pennsylvania alleged that the company improperly classified assistant managers as exempt, failed to pay overtime and violated meal period laws. The company denied any wrongdoing and said it entered into the settlement to avoid legal fees and the uncertainty/distraction of a trial.
Interwall Pays $1.7 Million
The California Attorney General reached a settlement with Interwall, a Southern California drywall company, for alleged overtime, meal-period and record-keeping violations. The company agreed to pay $1.4 million in damages, $200,000 in fines, $131,000 in back payroll taxes and nearly $100,000 in attorneys’ fees and other costs.
Among other things, the company allegedly shifted employees among various corporate entities to avoid overtime as part of an effort to cut costs and underbid competitors. The company denied any wrongdoing.
The Lessons
Once again, one of the best ways to avoid big-ticket liability is to ensure that your company fully complies with all wage and hour laws. This is especially critical with exempt/non-exempt classifications, meal/rest period laws and record-keeping requirements. Courts (and plaintiffs’ attorneys) continue to be very hard on employers where there’s even a hint of impropriety.
As a starting point, check out our Fair Labor Standards Act (FLSA) Cheat Sheet here or under the “Tools & Tips” section of the Blawg.
