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Aon Corp. Settles Employee Misclassification Lawsuit for $10.5M

July 8, 2011

A $10.5 class action wage and hour lawsuit settlement has been recently approved in Los Angeles, California, accusing Aon Corporation units in California of engaging in the employee misclassification of over 500 employees.

Our Santa Ana, labor and employment attorneys have been following the news of the wage and hour class action lawsuit settlement, that accused the Aon business units of misclassifying California Account Specialists, who worked to assist account managers in providing insurance brokerage services to Aon's clients.

The California Account Specialists were reportedly misclassified as exempt administrative employees who were salaried, and therefore did not receive overtime compensation when they worked beyond forty hours in a workweek. The group of California Aon specialists reportedly included relationship specialists, client specialists and senior account specialists, as well as account managers, client services representatives, and customer services representatives--and were all classified as exempt from overtime and rest and meal break requirements.

The California class action wage and hour lawsuit was certified last year, against Aon Insurance Services, Aon Risk Services Companies, and Aon Corporation, and the $10.5 million settlement approved last week by the Los Angeles Superior Court, applies to 534 class action members, who should receive their wage and hour settlement within the next sixty days.

As our Riverside employment and labor attorneys have discussed in a recent California wage and hour blog post, employee misclassification continues to be massive labor and employment problem throughout the nation. The misclassification of employees can often happen when an employer incorrectly classifies an employee as "exempt," so that the employee is not entitled to overtime pay or other wage and hour benefits, like meal and rest breaks, that are usually available to covered non-exempt employees.

Often employee misclassification happens when an employee is guided to work in such a way that causes the exempt employee to lose his exempt status, like when an employer subtracts work time that was missed from the employee's salary, which make the employee eligible to receive overtime pay.

Under the Fair Labor and Standards Act (FLSA), non-exempt employees are required by law to be compensated for one and a half their regular hourly rate of pay when they work over forty hours in week. Employers often miscalculate how much overtime workers are actually owed, when working past a forty hour work week, which can also lead to wage and hour violations.

In Brea, Buena Park, and Costa Mesa, California, contact Howard Law, PC today at 1-800-872-5925, for a free consultation about your rights.

Aon pays $10.5 million to settle wage-and-hour lawsuit, Business Insurance, July 1, 2011

California Court Approves $10.5 Million Settlement With Aon, Insurance Journal/Reuters, June 29, 2011

Related Web Resources:

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)

Related Blog Posts:

Workers File $60M Lawsuit Against Blackwater/Xe for Employee Misclassification, California Employment Lawyers Blog, June 18, 2011

Court Awards Over $200K to Security Guards in Employment Misclassification Lawsuit Resolution, California Employment Lawyers Blog, June 14, 2011

Strip Club Violates FLSA--Judge Rules Exotic Dancers are Not Independent Contractors, California Employment Lawyers Blog, May 27, 2011

DOL's Smartphone App Could Reduce Wage Theft, Overtime Disputes, California Employment Lawyers Blog, May 25, 2011

"White Collar" Exemptions under the FLSA, California Employment Lawyers Blog, November 12, 2010