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 believe that your employer is not paying you all of your wages for all of your lawfully earned overtime compensation at a rate of one and half times your normal wages as requires under the Federal Fair Labor Standards Act or Ohio Fair Labor Standards Act, contact the attorneys at The Spitz Law Firm today for a free and confidential initial consultation. Or maybe you are being misclassified as an independent contractor. The wage and hour lawyers at The Spitz Law Firm will provide you with the best options for your overtime pay dispute situation. If you even think that you may be entitled to overtime pay that you are not being paid, call (216) 291-4744.
The materials available at this wage and hour law website are for informational purposes only and not for the purpose of providing legal advice. Your best option is to contact an Ohio overtime attorney to obtain advice with respect to FLSA questions or any particular employment law issue. 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 the top of this page or through this site are the opinions of the individual lawyer and may not reflect the opinions of The Spitz Law Firm or any individual attorney.