California supply chain management company sued for employee misclassifications

C.H. Robinson, a California-based supply chain and transportation management company, was recently notified of a class action lawsuit regarding employee misclassifications. According to wage and hour attorneys Blumenthal, Nordrehaug & Bhowmik, the company's account managers and transportation representatives were not properly paid for their time attendance because they were misclassified as exempt.

As a result of this classification, the employees were denied overtime wages (time-and-a-half the regular pay rate) when they worked more than eight hours a day or 40 hours in a week. Because California's labor laws are more stringent than those set forth by the Department of Labor, the employees could receive large settlements if C.H. Robinson's payroll policies are non-compliant.

To qualify for an exemption, employees must be performing work in an administrative, executive, professional, outside sales or skilled computer position. However, their primary duties must meet very specific criteria established by the Fair Labor Standards Act and they must receive at least $455 per week and be paid on a salary basis.

If employers are uncertain about the correct classification for their workers, they can decide to outsource human resources. With the help of professionals who are familiar with labor laws, they can reduce the risk of violations and potential lawsuits.