Former Under Armour Employee Alleges Salary Misclassification – Why He and Others Could Be Owed Back Wages:

A former longtime employee at Under Armour’s corporate headquarters in Baltimore filed a Complaint against his previous employer alleging unpaid overtime. The Complaint was filed in the U.S. District Court of Maryland and alleges that Under Armour incorrectly classified the employee as “salaried exempt.”

The former employee worked as an Allocations Analyst (“Analyst(s)”) who often worked in excess of sixty (60) hours per week. Rather than paying him overtime, the Complaint alleges Under Armour only paid him his base salary for all hours worked. According to the Complaint, Analysts’ job duties primarily involved data entry and other routine tasks. The Complaint alleges that Analysts had to follow strict procedures and guidelines in order to complete their tasks. Based on their duties, it is alleged that the Analysts should have been paid overtime for all hours worked over forty (40) in a week.

The Complaint also alleges that Under Armour had strict weekly deadlines which required Analysts to work excessive hours. Those deadlines, combined with understaffing, forced Analysts to work late into the evening and most weekends. Rather than compensate its Analysts for this excessive overtime, Under Armour would only pay these employees their base pay.

Salary Misclassification and the FLSA

Unlike what many employers will tell you, being paid a salary does not make an employee exempt from overtime compensation. Legally, whether or not an employee is entitled to overtime compensation depends on the specific job duties the employee performs, NOT their job title or method of compensation.

The Fair Labor Standards Act (“FLSA”) mandates that all qualified employees receive overtime pay. If an employee is misclassified as salaried, the FLSA permits employees to seek back pay for all of the overtime hours they worked. The FLSA also allows employees to receive “liquidated” or “double damages,” meaning employees can potentially receive twice the amount of overtime pay they are owed.

Overtime Pay for Administrative Work; The Issue with Data Entry:

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One of the most common types of FLSA misclassified employees are administrative office personnel. Often times, these employees spend most of their time performing routine clerical tasks, such as data entry. Many of these employees have college degrees and are given sophisticated job titles by their employers. These employees are also told they are “salaried exempt,” meaning that the employer doesn’t have to pay them overtime.

Based on their job duties, these employees should be classified as hourly and receive overtime pay. Since employers don’t have to pay these employees overtime, it has become commonplace for employers to force their employees to work excessive hours. If you or someone you know is a salaried employee who primarily performs data entry, or other routine tasks, it is critical that you seek legal counsel.

 

 

Wells Fargo’s Problems Go Farther

Image from San Francisco Business Times.

In recent weeks, news reports have revealed that Wells Fargo is a pillar of American greed.  It was reported that two million fraudulent checking, savings, credit and debit card accounts were opened over a period of four years. In addition to consumer fraud, Wells Fargo is also facing class action lawsuits alleging unpaid overtime and off the clock work as a direct result of the lofty sales goals that were impossible for employees to meet on a daily basis. This led to the regular practice of opening fraudulent accounts.[1]

Expanding Overtime Pay to Millions

By Ben Davis

In today’s modern workforce, employees have increasingly been working longer hours for less pay. Many of these workers are salaried employees, who are told by their employer that they do not qualify for overtime. Recently, under the Obama administration’s direction, the Department of Labor (DOL) passed new regulations that affect who is eligible for overtime payments. The DOL estimates that this will now enable approximately 4.2 million Americans to receive overtime payments, who were previously considered exempt. So who are these people and what do they do?