Unpaid overtime is costly
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When Casey’s General Stores Inc. agreed to settle two class-action lawsuits based on overtime pay, the Ankeny-based company joined a growing list of businesses caught in the “pay me now or pay me later” trap.
The recession might be increasing the temptation for companies to squeeze workers for more hours without more compensation. However, the trend seems to have been growing for several years amid the pressure to beef up the bottom line.
Des Moines lawyer and blogger Rush Nigut, quoting other sources, contends that 70 percent of U.S. employers are out of compliance with wage-and-hour laws.
If so, expect more lawsuits.
Casey’s spent two years dealing with an action filed in 2007 by two former employees who claimed the company failed to properly pay overtime compensation to its assistant managers. A similar lawsuit was filed in 2008.
According to a Form 10-Q filed with the Securities and Exchange Commission by Casey’s, “The complaint alleges that the subject employees were denied overtime pay for hours worked in excess of 40 hours per week, as well as mandatory meal and rest breaks, and that the Company failed to accurately record actual hours worked and willfully encouraged the employees to work ‘off-the-clock.'”
This month, Casey’s agreed to an $11.7 million settlement.
Technological advances mean the time struggle is just going to get more complicated. According to the Business Journal of Milwaukee, “A maintenance worker in CB Richard Ellis’ Milwaukee property management division is suing his employer for back wages because the company forces hourly employees to carry BlackBerry telecommunications de- vices to stay in touch during off hours.”
Many employers might argue that a little extra unpaid work is better than layoffs. Just remember that the penalty for breaking the rules can carry a multimillion-dollar price tag.