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Law Firm Faces Malpractice For Overtime Advice

CHICAGO — An Illinois law firm, Tressler LLP, faces a malpractice lawsuit in Illinois state court because of the advice its lawyers provided, which led to an overtime pay class action. Universal Security Corp.’s lawsuit claims the law firm did not understand employment law sufficiently enough to provide sound legal advice on the matter. As a result of the allegedly faulty advice, Universal alleges it wrongly relied on the advice and faced a costly overtime class action. Universal is seeking unspecified damages and attorney’s fees.

The Bad Advice

According to the lawsuit, Universal, a security guard company, was advised that overtime pay could be calculated on a two-week 80-hour basis instead of the more common 40-hour a week basis, which is actually required by the Illinois Wage Collection and Payment Act. Because of this faulty advice, Universal believed it was permitted to create employee work schedules where employees worked 50 hours one week and 30 hours the second week. Under the 80-hour calculation, even if the employee worked 50 hours one week, no overtime would be owed, so long as the employee did not work more than 30 the next. But under the 40-hour calculations, the employee would be entitled to 10 hours of overtime for the first week. The difference in the two systems can have significant effects on employer scheduling and employee wages.

The Overtime Trouble

In its lawsuit, the company alleges the lawyers at Tressler claimed to be competent labor law attorneys. Despite relying on this claim, some at Universal doubted the legality of the 80-hour overtime advice as early as 2007, but they still went along with the advice. The law firm, and specifically Durga Bharam, a partner at Tressler, served as outside general counsel for Universal from 2004 to 2010. Shortly after Bharam left as outside counsel, the company was hit with an overtime class action and discovered Tressler and Bharam’s advice was incorrect. Universal was forced to hire a different law firm to fight the lawsuit, which it later settled at great expense. The company claims that were it not for the law firm’s professional negligence, there would not have been an overtime lawsuit and the company would not have needed to hire additional legal counsel.

Overtime Representation

Overtime pay and other wage laws can be complicated and sometimes confusing. Whether you are an employee or an employer, it is important to seek competent legal representation that you can trust to handle your overtime wage concerns. If you have questions or believe your employer is not paying or has denied you overtime pay, our top-rated team of overtime pay lawyers has significant experience in handling overtime claims and can help.

Contact our experienced team of overtime pay lawyers today at (855) 754-2795 to discuss your situation. Alternatively, complete the Free Unpaid Overtime Case Review form and our knowledgeable legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.

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