$1,000,000 in Overtime Wages and Penalties to be paid by Insurance Giant
In yet another example that dispels the myth that large companies always “get it right” and classify and pay employees correctly, UnitedHealthcare has agreed to pay 479 of its workers $934,551 in back overtime wages, plus $104,280 in civil penalties. The Insurance giant was alleged to have incorrectly classified the 479 employees as “exempt” from the federal overtime pay regulations and thereby failed to pay them properly for all of their actual hours worked.
The claim involved the company’s Hartford, Connecticut facility engaged in IT, finance, actuarial and underwriting operations. Claimed violations included misclassifying several categories of workers as “administratively exempt”, failing to include certain compensation in calculating workers’ regular rates of pay, on which time and one-half should have been paid, and recordkeeping violations with respect to the number of hours worked by the employees who had been misclassified as exempt.
The Secretary of Labor commented: “Employers subject to the Fair Labor Standards Act’s requirements, whether large or small, must ensure all of their workers are properly classified and receive the wages they are owed,” and “It is simply unacceptable that a multi-billion dollar company misclassified its employees and failed to abide by some of the nation’s most basic labor laws.”
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