Texas company settles overtime claims for $1.56 million — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Texas company settles overtime claims for $1.56 million

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The U.S. Labor Department recently announced that McLane Co. Inc., a Temple wholesale distributor of food and grocery products, has paid $1.56 million to 570 current and former employees for wage and hour violations.

The settlement resulted from an investigation of McLane conducted between August 2005 and August 2007 by the Labor Department’s Wage and Hour Division. Investigators found that McLane failed to pay overtime wages to eligible retail merchandising employees in violation of the Fair Labor Standards Act (FLSA).

According to the Labor Department, the company incorrectly regarded retail merchandising specialists at its Nicholasville, Ky., location as outside sales employees exempt from the FLSA’s overtime requirements. The Wage and Hour Division also concluded that McLane failed to keep required records of hours worked.

Final note: Overtime lawsuits are practically a cottage industry. If the Labor Department doesn’t step in, chances are a private attorney will. That’s why it’s crucial to be proactive. If you have any doubts about how you are classifying employees, get expert help.

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