Boston Market pays workers $3 million in back wages
Boston Market, a quick service restaurant chain based out of Golden, Colorado, recently agreed to pay $3 million to settle an employee lawsuit. Workers claimed the company failed to pay them the overtime wages they were owed as the result of a misclassification.
According to the litigation, which was first filed in 2010, the assistant managers were not paid overtime rates (one-and-a-half-times the regular pay rate) for hours worked beyond 40 in a given workweek because their employer classified them as exempt workers.
The Fair Labor Standards Act (FLSA) does not guarantee employees overtime wage if they meet specific criteria to qualify for an exemption as an administrative, executive, professional, computer or outside sales employee. However, Boston Market's assistant managers routinely performed non-managerial duties such as cleaning ovens, serving food and mopping floors that are not in line with those required by the FLSA.
Employers can avoid expensive litigation by making sure their payroll policies are in line with federal and state labor laws. Nationwide chains might face additional compliance challenges when operating businesses in states with more stringent requirements. To help reduce liability, businesses can use a payroll processing service that will apply local requirement
According to the litigation, which was first filed in 2010, the assistant managers were not paid overtime rates (one-and-a-half-times the regular pay rate) for hours worked beyond 40 in a given workweek because their employer classified them as exempt workers.
The Fair Labor Standards Act (FLSA) does not guarantee employees overtime wage if they meet specific criteria to qualify for an exemption as an administrative, executive, professional, computer or outside sales employee. However, Boston Market's assistant managers routinely performed non-managerial duties such as cleaning ovens, serving food and mopping floors that are not in line with those required by the FLSA.
Employers can avoid expensive litigation by making sure their payroll policies are in line with federal and state labor laws. Nationwide chains might face additional compliance challenges when operating businesses in states with more stringent requirements. To help reduce liability, businesses can use a payroll processing service that will apply local requirement
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