Lawsuit Filed Against Wal-Mart Subcontractor for Overtime Violation

A warehousing company that subcontracts for retail behemoth Wal-Mart has had a second lawsuit leveled against it for allegedly failing to pay employees for working overtime. According to the LA Times, Schneider Logistics Transloading & Distribution Inc. has been accused of requiring workers at multiple warehouse locations to sign waivers giving up their rights to overtime compensation. Wal-Mart released a statement saying "From our standpoint, it is never acceptable for anyone doing work for us to violate the law.”

The lawsuit further details that starting in 2008, Schneider “devised an unlawful scheme to require its employees to work overtime without paying them the premium to which they were entitled.” Schneider allegedly coordinated a legal four-day 10-hour per day workweek for its employees, but the lawsuit alleges that the company broke their own rules by refusing to give steady schedules for workers. It has been claimed that some employees worked as few as 20 hours per week, some as many as 100. Those that worked over 40 hours in the week were not compensated for overtime.

The Fair Labor Standards Act is the federal legislation that sets minimum standards for overtime pay, minimum wage, recordkeeping, and youth employment standards. The FLSA requires employers to pay one-and-one-half times the standard rate of pay for every hour worked over 40 hours in a single workweek. It also mandates that employers must pay every non-exempt employee at least the federal minimum wage of $7.25 per hour.

With confusing labor laws and alleged widespread violations, many employees may question whether they are receiving the compensation they are guaranteed by federal law. If you believe that your employer may be violating the Fair Labor Standards Act (FLSA) or any state employment laws, contact a dedicated overtime attorney to see if you are entitled to receive back wages for under-payment or unpaid overtime.