The Federal Labor Department recently agreed to pay $7 million to settle a 2006 unpaid overtime complaint by its own DOL employees.

Represented by their union, the American Federation of Government Employees, Dept employees claimed that the DOL did not pay employees for off-the-clock work for a period between 2003 and 2006. Union lawyers also discovered that many of the Dept employees were classified as exempt from the FLSA overtime rules when they should not have been.

After the lengthy arbitration discovery by union lawyers, the Labor Dept noted that many employees were reclassified as non-exempt as DOL officials directed all department supervisors to review employee positions and classifications with new guidance from the DOL.

Between 2000 and 3000 current and former employees are to receive settlement back wages.

It was noted that this settlement, which involved no admission of wrongdoing by the DOL, comes at a time when the DOL itself is focusing on enforcement of the new non-exempt wage cap that will significantly increase the number of employees subject to overtime wages and will go into effect Dec 1, 2016.

 

About Time & Pay:

Time & Pay is a professional payroll service provider located in Johnson City, TN. We service businesses of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services , guaranteed payroll tax compliance, automated time and attendance systems and services, pay-as-you-go worker’s comphuman resource management systems and services, ACA compliance and more. We provide our customers with the cost effective tools you need to better manage your payroll, your employees and your business. Time & Pay’s services guarantee you will save money, time and aggravation and we back them up with the customer service you expect and deserve. Contact Us today to learn why business owners throughout the country are saying:

“Time & Pay! Why would you do payroll and timekeeping any other way?”

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