PORTLAND — A U.S. District Judge in Oregon federal court has ordered David Emami to pay more than $500,000 in unpaid overtime wages and damages to 33 of his employees. The order came after an extensive investigation by the U.S. Department of Labor (DOL) determined Emami and his companies actively denied their employees proper wages in violation of the Fair Labor Standards Act (FLSA).
The Violations
The 33 employees are employed as landscaping, construction and general maintenance laborers at Emami’s retail and office properties across Oregon. According to information gathered from an extensive two-year Labor Department investigation, the employees at Emami’s companies were required to complete two time cards as part of a “scheme” to avoid paying employees the overtime to which they were entitled. Based on their findings, the employees would record the first half of their day on one time card and the other half on a second time card. Each time card was for a different “company,” but both companies were owned by Emami.
The employees’ rate of pay would not change on either time card, but the employees would receive one paycheck from each company each week. Between the two paychecks, the companies recorded and paid the employees for all of the hours they worked; however, because the employees’ time was split between two paychecks and two “companies” the employees were never credited with overtime, even when they typically worked more than 40 hours in a workweek. Since the employees were never credited with overtime work, the employees received straight time pay, usually between $8.50 and $8.80 an hour. Non-exempt employees are entitled to one and a half times their regular rate of pay for all hours worked over 40 in a workweek. And the “scheme” went further to include the employees being wrongfully classified as independent contractors, not entitled to overtime, for the second half of their shift.
The Court Order
The court issued its order in mid-December 2014. Of the $500,000, half is intended to represent the earned and unpaid overtime wages, while the other half accounts for damages. When calculating the damages, the court also took into consideration additional violations of the FLSA. The DOL investigation found that Emami also violated the FLSA’s anti-retaliation provisions when the employees were threatened for cooperating with the government’s investigation. The court also ordered Emami to pay for a third-party auditor for the next three years to insure no further violations of federal labor regulations.
If your employer requires you to use more than one time card or uses an automated timekeeping system, you may have a wage or overtime pay claim. Contact our top-rated team of overtime pay lawyers today at (855) 754-2795. Or complete our Free Unpaid Overtime Case Review form and our experienced legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.