Paperwork error that cost $1.8M
February 10, 2009 by Carol KatarskyPosted in: Best practices, DOL, In this week's e-newsletter, Latest news & views, OT regs, Tax compliance
As if you needed more proof that misclassifying workers could cost your company big time: A temp agency in Massachusetts was just ordered to pay more than $1.8 million in back overtime pay to 973 employees.
The company had wrongly classified the employees as exempt. Four of the employees worked in the company’s main headquarters, the others were placed in temporary assignments around the country.
The workers found to be misclassified worked in a variety of positions: technical writers, payroll analysts, accountants, sales reps and a variety of IT-related jobs.
Tags: DOL, Exempt/Nonexempt, Legal trouble, Overtime, Payroll
