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FLSA lawsuit alleges workers lack piece of the action.
Employees held a rally this week to bring attention to a Fair Labor Standards Act lawsuit they filed against their employer, Schneider Logistics. The workers stock warehouses at retail stores including Wal-Mart and employees held the rally to send the message to management that economic hard times do not excuse overtime and minimum wage violations under the FLSA.
"Instead of helping ease the economic crisis," rally supporters said, "these large companies are only making it worse."
Piece rate system benefits employer, gives employees short end of the stick.
What is piece rate pay?
Most workers are paid an hourly rate; however, the law permits employers to pay employees a set amount for every unit of work produced. In this case, the workers were paid a set amount for loading and unloading delivery trucks at warehouses. The abuse arises when the piece rate is lowered so much that employees earn less than minimum wage or when the employer fails to pay a premium pay for overtime hours. This becomes messy in piece rate cases, but the law clearly requires overtime pay for hours over 40 in a work week even in piece rate contexts.
In this case, the piece-rate system used led to pay falling below the federal minimum wage and some workers were on site up to 14 hours without any overtime pay. Warehouse Workers United helped the workers file the FLSA suit.
Subcontractors fined for failing to provide wage statements to workers
The wage and hour lawsuit seeks class action status for employees who claim Schneider Logistics and two subcontractors from the distribution centers incorrectly paid them by using a "piece rate" system where employees were shorted on minimum wage and overtime. The workers also claimed that if employees complained about the pay violations their jobs were put on the line.
Two of the companies named in the suit were fined for improper timekeeping records and for failing to provide employees with itemized wage statements.
Employees frequently cheated with piece rate pay should call our wage lawyers.
Don't let your employer cheat you out of your wages any longer. You can order our free book to learn answers to your questions and you can also call 888-449-2068 to start your free case review today. Kennedy Hodges does not represent the case above, but we have helped hundreds of workers just like you in wage and hour cases across the country .
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