A federal judge in Illinois has called for the former owner of an antique coin and metals shop to settle a class-action lawsuit for time and attendance violations related to unpaid overtime. According to The State Journal-Register, the company's owner is personally liable for paying $12.2 million in back pay to nearly 150 ex-employees.
The State Journal-Register reported that a default judgment was issued for back payment of wages and overtime after other violations related to fraudulent activity on the part of the defendant were discovered and he subsequently attempted to file bankruptcy as protection. The bankruptcy filing was dismissed, the judgment went ignored and the defendant moved out of Illinois.
The lawsuit claims that in effort to circumvent overtime payments to workers, the defendant willfully misclassified employees under management titles that made them exempt from the additional compensation. Under the Fair Labor Standards Act guidelines, certain job functions are ineligible to receive overtime pay regardless of the number of hours worked above the standard of 40 in a given week.
In addition to the multi-million dollar settlement, the defendant will also be required to pay plaintiffs attorney's cost in the amount of $120,920.
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