Farmers Insurance to pay workers $1.5 million in back wages

California-based Farmers Insurance recently agreed to pay more than $1.5 million in overtime back wages to nearly 3,500 employees at 11 of its customer service call centers in six states.

An investigation by the United States Department of Labor's Wage and Hour Division uncovered violations of the Fair Labor Standards Act's overtime and record-keeping provisions at the centers, located in Florida, Kansas, Michigan, Oklahoma, Oregon and Texas.

Through a review of the company's employee tracking and payroll systems, investigators found that employees performed an average of 30 minutes of unrecorded and uncompensated work per week when carrying out pre-shift duties.

"Failing to properly compensate employees for pre- or post-shift work is a violation of federal law," said Secretary of Labor Hilda L. Solis in a statement. "The Labor Department is committed to ensuring that ... workers are protected against exploitation, and law-abiding employers are not placed at a competitive disadvantage."

Employees must be compensated for pre-shift and post-shift work activites and paid time-and-a-half for hours worked beyond 40 per week, according to the FLSA.

Texas workers enjoyed another victory this week. C and K Supply, which rents equipment to oil companies, agreed to pay more than $433,000 in minimum wage and overtime back wages to 124 workers.

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