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Enwisen Investigated by DOL for Employee Misclassification--Pays $290K in Back Wages

December 10, 2010

According to a U.S. Department of Labor (DOL) news release, that our Ontario labor and employment attorneys read about this week, Enwisen, Inc., a California human resource services company, has paid over $209,000 in back wages to twenty-nine workers, after a DOL investigation found that the company allegedly engaged in employee misclassification.

The DOL investigation reportedly found that Enwisen classified their employees as "exempt" from overtime pay, and compensated them on a salary basis, but the employees should have been classified as "non-exempt," receiving overtime payment consisting of one and one-half their regular pay rates for any hours worked beyond forty hours in the workweek.

As our Riverside employment lawyers reported in a related blog, under the federal Fair Labor Standards Act, an exemption of minimum wage and overtime pay is provided for workers employed in executive, professional, administrative, and outside sales positions, as well as certain computer employees. These are considered "white collar" exemptions, and under the FLSA, to qualify for these exemptions, employees must meet certain FLSA criteria regarding their job duties, and must be paid on a salary basis that is not less than $455 per week.

In a blog discussing "exempt" versus "non-exempt" in the workplace, our Orange County employment attorneys discussed the FLSA's requirements that employees covered under the act must be paid at least the federal minimum wage of $7.25 an hour, plus one and one-half their regular pay rates for all hours worked beyond 40 hours in the week, including incentive pay, commissions and bonuses. Under the act, employers are also legally required to keep accurate time and payroll records for all employees.

If you or someone you know in Anaheim, California, has experienced employee misclassification or other violations of wage and hour laws, our team of employment attorneys and professionals at Howard Law, PC can help. Contact us online or call toll-free at 1-800-872-5925.

US Department of Labor Recovers More than $209,000 in Overtime Pay for Employees at Novato, Calif.-based Enwisen Inc., The U.S. Department of Labor Wage and Hour Division Press Release, December 7, 2010

Related Web Resources:

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