DOL Settles Overtime Claims with its Own Employees

Friday, August 19, 2016

Attorneys for the American Federation of Government Employees Local 12 announced that the government agency had agreed to pay $7 million to settle long-standing allegations by DOL workers who claimed they were not paid for off-the-clock work.

The litigation itself stretched over 10 years—including many years when the DOL itself was taking aggressive stances against private employers for unpaid overtime and misclassification, as well as changing regulations regarding exempt and non-exempt status. One of the union lawyers estimated that there may be 2,000 to 3,000 DOL employees that will split the settlement to cover unpaid back wages.

This matter should illustrate to employers that no one is immune to the law. It is best to prepare for potential claims by spending time auditing your wage and hour practices and policies.

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