A subcontractor hired by Walmart is being sued by warehouse workers in Southern California who claim they weren't paid for overtime.
Three employees filed a lawsuit against Schneider Logistics Transloading & Distribution for an unlawful arrangement resulting in unpaid overtime
employee attendance.
The employees claim they originally made a deal with the distribution company in which they would work 40-hour workweeks split between four 10-hour days rather than the standard 5 8-hour shifts. The company even had workers sign agreements that waived their rights to overtime pay. However, the employer scheduled employees erratically. Sometimes, workers were needed for just 20 hours one week while and were required to work as many as 100 hours the next.
According to California labor laws, employers are exempt from paying workers overtime wages - one-and-a-half-times the regular pay rate - for work days longer that exceed eight hours only if they make an "alternative workweek" schedule as long as employees comply and uphold the agreement. Because the subcontractor violated the agreement, they may end up owing between 100 and 150 employees back wages for overtime.
The California Labor commission recently opened an investigation into a similar case involving the Inland Empire warehouses that resulted in over $1 million in fines.
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