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Benefits February 7, 2006
Careerbuilder Pays $524K in DoL OT Settlement
February 7, 2006 (PLANSPONSOR.com) - Online
recruiting site Careerbuilder.com has agreed to pay $524,216
as part of an out-of-court settlement of allegations the
company improperly classified certain employees as overtime
exempt.
Reported by Fred Schneyer
According to a US Department of Labor (DoL) news release , the settlement covers 677 workers.
The DoL alleged that violations occurred when, because of the misclassification of employees, the company failed to compensate those workers at time and one-half their normal pay rate, including commissions, for hours worked over 40 in a single workweek. The department’s investigation covered a two-year period beginning January 2003 through January 2005.
The Fair Labor Standards Act (FLSA) requires employers to pay covered, non-exempt workers one-and-one-half times their regular rate of pay for all hours worked over 40 in a single workweek and to maintain accurate employment records.