A Cleveland-based security firm has settled a time and attendance lawsuit with employees working as security guards. According to The Cleveland Plain Dealer, 30 employees will split a $14,760 settlement after an investigation conducted by the state's Wage and Hour Division determined that employees routinely worked more than 40 hours in a week without being paid overtime.
The Fair Labor Standards Act states that anyone classified as non-exempt must be paid for any hours in excess of what is considered standard in a workweek.
This is the second investigation into the company's business practices. In the first, the security firm was also found liable for non-payment of overtime and a settlement judgment was rendered. However, a follow-up probe was launched after allegations surfaced that the company requested workers receiving settlements to return the money.
The president stated that he allowed his employees to work extra hours but informed them that they would only receive their regular rate of pay because he could not afford overtime, and workers allegedly agreed to the proposal. In addition to back pay, the firm will be forced to pay a $5,000 fine.
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