Hall of Shame: 5 biggest OT settlements of all time

And you thought time-and-a-half was expensive! Check out how much these employers had to shell out for their overtime missteps.
No denying overtime is a significant expense for many companies. But it’s nothing compared to the price tag for companies that step outside the line in their OT practices.
Check out five huge settlements in recent history – and what companies of all sizes can learn from these companies’ mistakes:
1. EA Games: $14.9 million
Game over! Guess what landed this company on the hook for its overtime missteps? An employee blog, which raised the issue of unfair pay practices — and got co-workers thinking the same. The result: a nearly $15 million settlement to programmers who worked for the company during a five-year period.
2. Pacific Gas & Electric Co.: $17.25 million
Consistency’s the key here – and that’s what this utility learned the hard way. Though employees worked side by side doing the same jobs for the same hours, some earned overtime; while others didn’t. The only difference? Their job titles. The cost of this lesson? $17.25 million to “Senior New Business Representatives.”
3. Cintas: $22.75 million
Classifying workers can be a tricky prospect. When this uniform company determined its drivers were exempt from overtime, a court ruled they missed the mark. The hundreds of delivery drivers who didn’t earn their time-and-a-half? They received nearly $23 million in a class action suit.
4. Computer Services Corp.: $24 million
Sometimes, an entire industry gets the spotlight shined on it because of classification issues. That’s what led to this company having to pay eight figures to 40% of its workforce. Other companies in its industry had come under fire for denying tech workers overtime. That got CSC’s own employees wondering whether they, too, were entitled to more than they were receiving.
5. Tenet Healthcare Corp.: $85 million
Here’s reason to pay careful attention to new federal and state laws governing overtime. Back in 2000, California law changed, meaning that employees working 12-hour shifts were then entitled to overtime. When one employee’s pay stayed the same (the company lowered his hourly rate), he sued. A staggering 23,000 other employees got in on the action, and the company had to pony up one of the biggest OT settlements ever.
Free Training & Resources
Webinars
Provided by Yooz
White Papers
Provided by Anaplan
Further Reading
The Census Bureau requires businesses to complete the Economic Census to report on years ending in 2 and 7. With that in mind, watch out fo...
EBSA FY 2025 Enforcement Snapshot $1.4B recovered for workers and plans 878 civil investigations closed 253 criminal investigatio...
Due to new IRS regs, employers will be subject to stricter e-filing requirements in 2024. Find out what’s coming and check out the li...
A new opinion letter looked at whether one company needed to add bonuses into its overtime calculations under federal law. The answer fr...
There’s a Great Re-evaluation going on among your peers when it comes to health and well-being program benefits. That’s t...
The Department of Labor (DOL) has released its final overtime rule, bringing mid-year changes and a higher-than-expected salary level incre...