DENVER — A group of workers filed a class action suit against their employer LenderLive Network Inc. in Michigan, for violations of the Fair Labor Standards Act (FLSA). The class includes 88 members, many of whom worked from home, who were laid off from the company. After negotiations, the parties entered a settlement agreement in the amount of $2.4 million.
Forced Time Entries
According to the suit, the company forced employees to punch in and out at specific times regardless of the actual hours that they spent working. The representative class members alleged that they were required to meet unrealistic quotas and goals that could only be accomplished if they put in more than 40 hours of work a week. However, the company required them to only punch in for a specific set of hours. Additionally, there were no exemptions under FLSA that the company could claim the employees were covered by.
In addition to the FLSA claim above, the class members also alleged that the company violated the Worker Adjustment and Retraining Notification Act when it laid off employees without proper notice. The Act requires employer to provide 60-day written notice when 50 or more employees at a work-site are terminated. Of the total settlement amount. $300,000 will be awarded to 53 class members who claimed they received insufficient notice of their termination from the company. LenderLive disputed this claim and argued that because many of the employees worked remotely, they should not count towards the notification threshold.
Keeping Track of Hours Worked Under FLSA
Under FLSA, employers are required to keep accurate record of wages, hours, and other information on each employee. Employers must count as hours worked any part, however small, of an employee’s fixed or regular working time or identifiable periods of time where an employee is regularly required to spend on assigned duties. Setting artificial time limits violates FLSA when it does not reflect the actual realities of identifiable work time. Employers have to consider the actual work activities performed by the employee and whether those activities are, in reality, part of the work an employee is hired to do.
Employers cannot use artificial recordkeeping rules to deny overtime wages to employees and may be subject to penalties and sanctions, in addition to damages. You should call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that you and and other employees have a valid claim under FLSA and that your claims are common. Our top-rated team of wage lawyers will evaluate your situation to determine your best course of action. We will also determine if it is in your best interest to file a lawsuit against your employer. There are strict time limitations for filing, so it is important that you call our experienced attorneys today.