A group of employees at a call center that works with insurance exchanges under the Affordable Care Act have claimed they were denied earned overtime pay.
The nine employees based in Idaho allege that they were misclassified as exempt from the overtime requirements of the Fair Labor Standards Act, according to Businessweek. The staff said that despite putting in between 50 and 60 hours of work each week, they received no additional pay.
The suit argues that the workers' classification under the administrative exception is erroneous, as not all components of the administrative classification - like making business decisions and exercising individual judgment - apply to their duties. The call center staff claimed that they followed tight regulations and did not often use independent decision-making skills.
The Associated Press reported the suit also claims that workers missed scheduled breaks and meal periods, another violation of the FLSA. The total damages sought exceed $5 million.
Companies who want to avoid such a damaging situation should consider getting advice from a legal counsel with labor experience to make sure employees are properly classified. The use of time and attendance software can help businesses track the hours worked and pay received by each staff member as well.
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