The current recession has apparently caused numerous employers to cut corners and squeeze wage earners – sometimes illegally. Much to the chagrin of businesses, employees are fighting back and winning big judgments for unpaid wages. Wage and hour lawsuits are on the rise and it is costing employers millions of dollars in California and across the nation.
The most common employee class action lawsuit occurs when workers are eligible for overtime but the employer categorizes them as exempt employees in violation of the Fair Labor Standards Act. For example, workers at PG&E allege they were paid as salaried employees when they should have been hourly and therefore eligible for overtime. Workers say they are owed more than $17 million in overtime pay they did not receive.
Here are some of the top cases from 2009:
- Wal-mart employees claim $65 million and allege the company changed payroll records to avoid paying wages owed. Wal-mart employees in Washington State also claim Wal-mart engaged in wage abuse, including locking employees in and requiring them to work while off the clock.
- Wachovia bank employees claimed $39 million in unpaid wages and overtime.
- Washington Mutual loan consultants say they were not paid for work done during lunch, mornings, evenings and weekends.
- Delivery drivers for Cintas Corp. claim almost $23 million. They say drivers were improperly classified as exempt employees and denied overtime.
When employees sue for back wages they are often rewarded. The federal government has also stepped up enforcement of labor laws and is instigating its own lawsuits on behalf of workers, so more cases should be expected in the coming years.
The law office of Callahan & Blaine is California’s premier litigation firm, specializing in class action employment lawsuits like these. In a similar class action employment law case that took place in Orange County, California, Callahan & Blaine lawyers negotiated a $42 million settlement for a group paper carriers denied employment rights by the Orange County Register.
If you believe you have been wrongfully terminated, denied wages, or discriminated against by an employer, contact California’s premier litigation firm, Callahan & Blaine, to discuss your employment law case today.
