The U.S. Department of Labor intervened in a case against UnitedHealthcare and recouped approximately $934,000 in overtime pay that was owed to its workers. The case affected 479 employees who lost income due to improper classification at the Hartford, Connecticut, branch. The Department of Labor also fined the company $104,280, stating that the company incorrectly classified workers under the Fair Labor Standards Act.
The Department of Labor conducted interviews with 90 employees and received payroll records of 21,000 employees. The agency concluded that 479 were denied pay for working more than 40 hours week. Additionally, the agency uncovered that UnitedHealthcare failed to compensate many employees that should have received time-and-a-half pay for regular hours.
"Employers subject to the Fair Labor Standards Act's requirements, whether large or small, must ensure all of their workers are properly classified and receive the wages they are owed," Secretary of Labor Hilda L. Solis said in a statement. "Workers deserve to keep what they earn. It is simply unacceptable that a multi-billion dollar company misclassified its employees."
UnitedHealthcare is the largest health insurance provider in the United States, with more than 80,000 employees. This penalty, however, singularly targets the Hartford office which is responsible for IT, finance and underwriting.
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