BOSTON — Hundreds of workers for Massachusetts-based plastics manufacturer United Plastics recently won a substantial case worth more than $1 million worth of back pay, including unpaid overtime wages.
The U.S. Department of Labor’s Wage and Hour Division initiated the investigation by looking into whether or not United Plastics and a staffing agency, ASI Staffing Group Corp., conspired together to pay employees less compensation than owned.
The violations took place at both United Plastics Leominster, Massachusetts location and another facility in Sardis, Mississippi. The Department of Labor concluded the defendants defrauded the plaintiffs by creating fictitious corporate entities to record overtime hours to avoid paying time and a half.
About 550 workers will share in the $1.4 million award. That includes compensation for unpaid overtime wages and liquidated damages. In addition, the Department of labor slapped United Plastics and ASI Staffing Group Corp. with a $100,000 civil fine for “willful and repeated” violations of federal wage laws, including the Fair Labor Standards Act.
As part of the resolution to the case, the defendants must hire third-parties to design and implement new payroll and recordkeeping systems to ensure future violations do not take place. While the defendants entered into a settlement of the case whereby they admitted no wrongdoing, plaintiffs should see their unpaid overtime wages reimburse in the immediate future, bringing a resolution to the case.
Federal Overtime Pay Laws
Under the Fair Labor Standards Act, employees must be paid one and a half times their regular hourly rate for hours worked above the 40-hour overtime pay threshold. While some types of workers may be classified as overtime-exempt if their job duties meet certain qualifications, most hourly workers are entitled to receive overtime.
Under the Fair Labor Standards Act, employees can file civil claims to recover up to two years of unpaid wages in cases where the employer did not knowingly violate federal wage laws. In instances where the violations were intentional, plaintiffs may be able to recover up to three years of back overtime pay.
FLSA Overtime Pay Lawsuits
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 believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.