Wage & Hour Lawsuits In Full Swing
The owner of a maintenance service company was sentenced to 10 years in prison in Michigan for a number of workplace violations, including not paying their employees overtime that was due them, and failure to withhold federal income tax, unemployment tax, Social Security and Medicare from their wages. As a result of the investigation, the owner also pled guilty to harboring a significant number of illegal aliens. The defendant tries to expatriate his assets and flee the U.S., but his efforts were unsuccessful. The jail sentence was upheld on appeal.
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Over 350 workers at a California maid service and carpet cleaning company were awarded $2.5 million in back wages, including unpaid overtime, after the U.S. Department of Labor found that their employer wrongly classified them as independent contractors. The owners were also fined $1 million in liquidated damages. The owners disregarded the court order, and were recently taken into custody for failure to make the required payments. They were later released pursuant to their promise to pay the required fines within a week’s time.
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Wal-Mart won final approval of an $85 million settlement to pay workers who sued for unpaid wages. The settlement is part of a global $640 million settlement reached in December. Workers in 30 states filed actions against Wal-Mart, claiming the company denied them rest breaks and manipulated their timecards to reduce their wages.