Monday, August 31, 2015

Overtime Pay Lawsuit Hits Walsh Construction

Chicago based Walsh Construction is facing a federal class action overtime pay lawsuit in Connecticut, brought by non-craft project bookkeepers claiming Walsh improperly classified them as professional accountants, exempt from time and a half for hours worked past 40 per week. Most construction tradespeople belonging to unions have labor agreements requiring them to be paid time and a half –or more on Sundays and holidays – for overtime work, but non-union clerical and administrative staffers lack the overtime pay requirements of union contracts.

The class action lawsuit is part of a drive to use the existing Fair Labor Standards Act, and the Obama administration’s proposed new rules, to require construction contractors to pay overtime past 40 hours to everyone on a project site who earls less than $52,000.00 per year. Companies in the construction business should watch the outcome of this case closely, to determine what impact the result may have on their own payroll expenditures, and bottom lines.
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