NEW YORK — A group of fire safety directors settled an overtime class action lawsuit against U.S. Security Associates, Inc., for $1.25 million. The fire safety directors claimed that the company violated the Fair Labor Standards Act (FLSA) and New York State labor laws by failing to pay overtime and for unlawful wage deductions. These employees worked at three New York City Metropolitan Transportation Authority buildings from February 2010 through May 2014.
Overtime Claims
The plaintiffs in this case claimed that they regularly worked more than 40 hours a week without receiving overtime pay. Unless employees are exempt from FLSA, they must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. FLSA does not cap the number of hours employees may work in any workweek and applies overtime on a workweek basis. This workweek is a fixed and regularly recurring period of 168 hours – seven consecutive 24-hour periods. It may start at any day and at any hour of the day and does not need to coincide with the calendar week. Normally, overtime pay earned in a particular workweek must be paid on the regular payday for the pay period in which overtime wages were earned.
Wage Deductions
According to the plaintiffs, U.S. Security Associates, Inc., deducted multiple amounts from their paychecks illegally. It deducted $125 for the employees’ uniforms, $25 for licenses, and $15 for renewal applications.
Under New York labor laws, employers are prohibited from making any deductions from an employee’s wages unless they are expressly authorized in writing by the employee and are for the benefit of employee, are related to recovery of an overpayment for wages due to a mathematical or other clerical error, or for repayment of advances of wages made by the employer to the employee. If an employee authorizes a deduction, it must be voluntary and must follow receipt by the employee of written notice of all terms and conditions of the payments, including its benefits, and the details of the manner in which deductions will be made.
Authorized deductions are limited to payments for:
- Insurance premiums and prepaid legal plans
- Pension or health and welfare benefits
- Contributions to a charitable organization, or purchases made at events sponsored by charities affiliated with the employer where at least 20% of the profits are contributed to a charity
- United States bonds
- Dues or assessments to a labor organization
- Discounted parking or mass transit payments
- Fitness center or gym membership dues
- Cafeteria or vending machine purchases made at the place of business
- Pharmacy purchases made at the place of business
- Tuition, room, board, and fees for schooling
- Day care, before-school, and after-school expenses
- Payments for housing provided by nonprofit hospitals
- Other payments made for the employee’s benefit
If you or someone you know is not being paid overtime as required by FLSA or state laws, or have illegal deductions from a paycheck, you should call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page. Our top rated team of wage lawyers will evaluate your situation to determine your best course of action. We will also determine if it is in your best interest to file a lawsuit against your employer. There are strict time limitations for filing, so it is important that you call our experienced attorneys today.