(855) 263-3525

Overturned Overtime Decision Costs Department Of Labor $600,000

VICTORIA, Texas — Not only did the U.S. Department of Labor (DOL) have one of its overtime violation investigations dismissed, recently a Texas federal court ordered the DOL to cover the investigated company’s attorneys’ fees and costs. The company, Gate Guard Services LP, disagreed with the DOL’s investigation findings and order to pay $6 million and asked the court to dismiss the DOL’s order. The company also requested the DOL pay its attorneys’ fees. The court dismissed the order rather quickly, but the attorneys’ fees required more deliberation.   

The DOL investigates potential federal employment law violations, including Fair Labor Standards Act (FLSA) violations. Its investigations will include interviews, document review, and occasionally onsite inspections. Depending on the information gathered, the DOL will either take the case to court or provide the complainants with a notice to sue on their own. 

In this case, the DOL received complaints about wage violations from a former Gate Guard Services service technician and began investigating the company in July 2010. In October of the same year, based on its investigative findings, the DOL determined that the company had misclassified its gate attendants as exempt. Once the DOL made its finding, it informed the company and filed its order for the company to pay the affected employees $6 million in back pay with the court. The company appealed the decision in court, which is where it accrued attorneys’ fees. The court reviewed the DOL’s findings and investigation and determined that the employees were not misclassified; dismissed all of the FLSA claims; and said that the DOL’s investigation was insufficient to determine whether the employees were misclassified or not. 

In investigating the complaints in this case, the DOL interviewed 17 employees. However, the company, which records traffic on oil fields in Texas, had around 400 gate attendants who were allegedly misclassified. Generally, more information is needed to show there is a company wide policy of violations. And the court, in this case, believes that more interviews would have clearly shown that the gate attendants had not been misclassified.

Wage and overtime claims are frequently very fact specific. Whether it is the DOL or an employee seeking to correct misclassifications or denied overtime pay, there will likely be a considerable amount of investigation and collection of facts and interviews. Our experienced team of overtime pay lawyers can assist you with your wage concerns and determine the best steps to take for your claim. Contact our top rated team of overtime pay lawyers today at (855) 754-2795 to discuss your situation. Or complete the Free Unpaid Overtime Case Review form on the top right of this page 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.

Text Now For Free Case Review