Dallas company’s temp shell game doesn’t fool DOL — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Dallas company’s temp shell game doesn’t fool DOL

by on
in Human Resources,Overtime Labor Laws

Dallas-based Nieman Printing thought it had it all figured out when it hired two temp agencies to employ the same workers doing the same work, but on different days. Employees worked for one temp agency on Mon­­days, Tuesdays and Wednesdays. Thursday through Sunday they worked for the other agency, using separate time clocks.

The strategy: Keep workers from ever putting in more than 40 hours per week for one employer. Desired result: No overtime pay!

It didn’t work. Department of Labor (DOL) investigators saw through the charade. Now Nieman has agreed to settle the case, paying $96,335 in back overtime to 101 employees—plus a civil penalty of $26,000 for willful violations of the Fair Labor Standards Act.

Note: When it comes to pay she­­nani­­gans, the DOL has seen it all. Em­­ployers that try elaborate schemes to avoid overtime usually wind up having to pay much more than they would have saved cheating workers.

Leave a Comment