California Bank is Example that Misclassifying Employees Can Cost a Lot of Ka-Ching – Los Angeles Wage & Hour Claims Attorneys Blumenthal, Nordrehaug & Bhowmik

by Norman B. Blumenthal on January 23, 2013

  The recent tale of a California bank is an example that misclassifying employees can cost an employer a lot of ka-ching!

In a settlement with the Department of Labor (DOL), last year First Republic Bank, based in California, agreed to pay over $1 million in overtime pay to almost 400 of the bank’s employees who worked in five states, including California.  According to the DOL investigation, the bank determined certain employees were exempt from federal and state overtime pay regulations because of the positions they held, not because of the work performed.  These employees were then not paid overtime pay for hours worked in excess of 8 per day, or 40 per work week, nor were records maintained to track their hours.  Both acts were violations of the Fair Labor Standards Act (FLSA).

“Employers who do not take the time to assess the proper FLSA classification to intentionally avoid overtime pay regulations will be financially penalized,” said Norman Blumenthal, founding partner of Blumenthal, Nordrehaug & Bhowmik, a California employment law firm.

In calculating the overtime pay due the misclassified employees, the DOL included nondiscretionary bonuses the employees received.

Bank workers who believe the work they perform qualifies for overtime pay under California and Federal overtime laws, but your employer has not paid you overtime pay for these hours, call an experienced Los Angeles labor attorney today at Blumenthal, Nordrehaug & Bhowmik at (310) 981-3918.  Blumenthal, Nordrehaug & Bhowmik is a California employment law firm with offices located in San Diego, San Francisco and Los Angeles. The firm dedicates its practice to contingency fee employment law work for issues involving misclassification as a salaried worker exempt from overtime, failure to pay vacation wages, misclassification as an independent contractor, off-the-clock work, wrongful termination, discrimination and other California labor laws.

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