Not paid for on-call time? Firm settles suit for $750K
When workers feel they haven’t been adequately compensated for the time they’ve spent on-call, it could result in legal headaches and costly settlements for their employer — as this company recently found out.
Here’s what happened: Instead of paying IT maintenance employees for all hours worked while on-call, Verizon Enterprise Delivery LLC allegedly only paid workers a stipend equal to four hours of wages.
In addition, the company allegedly excluded the stipend from employees’ regular rate calculations, which resulted in unpaid overtime wages. The IT workers filed a lawsuit against Verizon, claiming the company had violated the Fair Labor Standards Act.
In the end, the company ended up settling the lawsuit with current and former employees to the tune of $750,000.
- Share on
Free Training & Resources
White Papers
Provided by Personify Health
White Papers
Provided by Anaplan
Further Reading
Learning that a Form W-2 contains errors is bad enough, but being assessed a penalty by the IRS is even worse. Errors can show up in man...
Wisconsin’s new earned wage access (EWA) law puts a price ceiling on what providers can charge employees for each advance. Payrol...
Year-end may seem a long way off, but some changes related to Form W-2 may require your attention now. For example, the Social Security...
One business that claimed a research tax credit ended up with a tax penalty instead. The company fought back in court, but the situation di...
When Congress passed the Tax Cuts and Jobs Act (TCJA) of 2017, the expiration date for some of the provisions seemed far off. Now, the date...
An Oregon restaurant recently learned a costly lesson about overtime and tip pool rules after a federal investigation found it had shortcha...
