MEMPHIS — The Department of Veterans Affairs’ Veterans Canteen Service was named in a 2015 class action lawsuit on the basis that the department had a common policy of illegally misclassifying Assistant Canteen Chiefs to avoid paying various benefits to those employees.
These employees would be misclassified as exempt employees – deprived of overtime benefits – even though by Federal Labor Standards Act standards, they did not fall under exempt status.
Plaintiffs reportedly worked over 40 hours per week without being compensated with the payment of 150% of the standard pay rate that is required under the FLSA.
The lawsuit has yet to be settled or enter trial and is currently pending in the U.S. District Court for the Western District of Tennessee.
What Is The VA Canteen Service?
The VA Canteen Service is comprised of over 172 retail locations – for those involved with the VA – whose profits are used to benefit the VA.
The service is proud to claim a wide variety of products it can offer to those who shop there that can be purchased for reasonable prices by all those who may come in.
What Does The Federal Labor Standard Act Require?
As defined by the FLSA, overtime work is any amount of work that extends beyond the standard 40 hour per 7 day week.
When employees work beyond the standard 40 hours, they are entitled to make 150% of their standard hourly wage. Additionally, hours worked must include activities that are considered “off the clock” if those activities were needed to effectively work a shift or if they benefited the company.
Canteen Service employees were illegally classified as exempt employees as they should have been paid overtime benefits for the hours they worked over 40.
Who Can I Contact To Start An Overtime Wage Lawsuit?
Many employees are being unlawfully denied wages by employers. If you feel that you fit this description, you should call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page.