The Fair Labor Standards Act (“FLSA”) requires that employers pay all employees, with few exceptions, at a rate equal to or greater than the federal minimum wage. Additionally, the FLSA requires employers to pay most employees time-and-a-half for any hours worked beyond 40 hours per week. Employers who violate the FLSA are liable for any back pay owed to the affected workers, plus an additional equal amount as liquidated damages. As once recent lawsuit illustrates, companies caught violating the FLSA can wind up paying millions of dollars in penalties. It’s a wonder why any company would take the chance.
In Morangelli et al. v. Chemed Corporation, a federal district judge recently approved a massive $14,000,000 settlement for violations of the FLSA. The employees in this class action suit were technicians working for Roto-Rooter Services Company. They alleged that they were not paid overtime properly pursuant to the FLSA and the laws of several states. The plaintiffs, who were paid on commission, also alleged that they were not paid the minimum wage and that the company took illegal wage deductions from their pay.
Some of the plaintiffs had signed arbitration agreements, which the defendant employer asked the court to enforce. As a result, a parallel arbitration proceeding was set into motion alongside the court case. However, the settlement agreement put an end to both proceedings by creating a settlement fund of $ 14,274,585 to cover the employees’ settlement awards as well as attorney fees and costs.
Employers are utilizing arbitration agreements more and more these days because a carefully worded arbitration agreement can often help an employer escape hefty judgments or settlements like the one seen here. If you even think you have a claim against your employer, it is extremely important to call an employment attorney who can help you understand your options, especially if you’ve signed an arbitration agreement.
If you have been denied minimum wages or not paid time and a half for your overtime hours, or even think that you might need an employment lawyer, then call the right attorney to schedule a free and confidential consultation at 866-797-6040. Spitz, The Employee’s Law Firm and its attorneys are experienced and dedicated to protecting employees’ wage rights under the Fair Labor Standards Act (FLSA) and Ohio wage law. The opportunity to meet directly with a wage and hour lawyer is just a phone call away. Your best choice is not to wait.
The wage and hour law materials available at this employment law website are for informational purposes only and not for the purpose of providing legal advice. It is best to contact an Ohio attorney to obtain advice with respect to any particular employment law issue or problem. Use and access to this employment law website or any of the links contained within the site do not create an attorney-client relationship. The legal opinions expressed at or through this site are the opinions of the individual lawyer and may not reflect the opinions of Spitz, The Employee’s Law Firm, Attorney Brian Spitz or any individual attorney.