American Airlines Federal Credit Union to compensate employees for lost overtime
The Fort Worth, Texas-based American Airlines Federal Credit Union recently agreed to pay more than $83,000 in overtime back wages after an investigation by the U.S. Department of Labor's Wage and Hour Division determined that it had violated portions of the Fair Labor Standards Act.
The company withheld time-and-a-half payments to nearly 300 of its current and former tellers, loan officers and customer service representatives who clocked employee attendance of more than 40 hours per week but were misclassified as exempt from federal overtime provisions.
"This company profited from employees working overtime without paying proper wages," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. She went on to explain that under the FLSA, "a nonexempt employee who works more than 40 hours a week is due overtime wages for those hours at a rate of time and one-half his or her regular pay."
Texas-based car delivery company M.S.J.E. Enterprises was recently sued for a similar infraction involving the misclassification of its workers as independent contractors in order to exempt them from minimum wage and overtime requirements. The case is yet to go to trial.
The company withheld time-and-a-half payments to nearly 300 of its current and former tellers, loan officers and customer service representatives who clocked employee attendance of more than 40 hours per week but were misclassified as exempt from federal overtime provisions.
"This company profited from employees working overtime without paying proper wages," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. She went on to explain that under the FLSA, "a nonexempt employee who works more than 40 hours a week is due overtime wages for those hours at a rate of time and one-half his or her regular pay."
Texas-based car delivery company M.S.J.E. Enterprises was recently sued for a similar infraction involving the misclassification of its workers as independent contractors in order to exempt them from minimum wage and overtime requirements. The case is yet to go to trial.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.