Overtime Violations Take Big Bite

A Prudential Insurance Company of America employee has accused the company of forcing her to work overtime without pay.  The employee stated she and other employees were pressured to work up to 50 hours per week while only being paid for 37 ½ hours and her requests for overtime pay were routinely denied.  The company denies any unlawful conduct.

Under the Fair Labor Standards Act (FLSA), nonexempt employees are to be paid time and one-half for all hours worked over 40 hours in the same pay period.  Enforcing the overtime provisions of the FLSA is a priority of the U.S. Department of Labor.  The DOL has recouped for employees millions of dollars each year, not including penalties assessed employers.  The DOL may recover back wages, either administratively or through court action, for the employees that have been underpaid in violation of the law. Violations may also result in civil or criminal action.

 To avoid contributing to these record-breaking collections, employers must ensure they are in full compliance with the FLSA when it comes to three central areas: classifying exempt employees, hours worked, and calculating overtime.  A full review of your pay procedures, along with record keeping and supervisory enforcement is essential for all employers.  Don’t expose yourself to an overtime claim.  The costs are too high.

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