Staffing Agency for Tesla Accused of Violating Labor and Wage Laws

Staffing Agency Connected to Tesla Accused of Violating California Labor and Wage Laws

FREMONT, CA — Workers at Tesla’s California facility recently filed a class action unpaid overtime lawsuit against a staffing agency working with the electric car company over claims that the defendant failed to comply with all of the state’s labor and wage laws, including failure to pay overtime and other compensation. The lawsuit accuses Staffing Solutions, Inc., which does business as Balance Staffing, and Personnel Staffing Group, LLC of failing to comply with California wage laws and pressuring these workers to accept payments via debit cards instead of a traditional paycheck.

According to the unpaid overtime lawsuit, filed in Alameda Superior Court, Tesla workers at the company’s Fremont contracted through the defendants did not receive one and a half times their average hourly rate of pay when working more than eight hours in a single day or more than 40 hours total in a week, as required under California labor and wage laws. While workers nationwide enjoy a 40-hour per week overtime threshold, California workers must earn overtime after working more than eight hours in a single day. When employees work 12 or more hours in a single shift, they must earn double their average hourly rate of pay.

Furthermore, the complaint alleges that the defendants failed to provide workers with mandatory 10-minute rest breaks after four hours on the job and a required 30-minute uninterrupted meal break immediately after five hours into a shift. California law holds that in cases where workers do not receive their 30-minute meal break, the employer must furnish the employee with one hour of regular pay that does not go toward overtime hours.

The overtime pay lawsuit also contends that Tesla should also be considered a joint employer of the plaintiffs and liable for paying back workers. Often times, large companies contract through staffing agencies to avoid responsibility for state and federal labor laws. However, when a company exercises a certain level of control over workers, courts may consider them a joint employer and subject to the same labor and wage laws as the staffing company.

Autoworker Unpaid Overtime Lawsuit

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