ECOLAB OVERTIME PAY CLASS ACTION

Ecolab is a global developer and marketer of premium cleaning, sanitizing, pest elimination, maintenance and repair products and services for the world’s hospitality, institutional and industrial markets. On November 2, 2010, this employment lawsuit was filed in the Southern District of California alleging that Ecolab intentionally misclassified maintenance workers as exempt from overtime laws in order to avoid paying them overtime compensation.   

As part of Ecolab’s business, the company employs individuals whose primary job duty is repairing and providing maintenance on leased commercial machines of Ecolab. These employees have the job titles of “Route Manager,” “Route Sales Manager,” “Sales Route Specialist,” “Service Installer” and “Service Professional.” As a matter of company policy, practice, and procedure, Ecolab has unlawfully, unfairly and/or deceptively classified every Service Employee as exempt based on job title alone, failed to pay the required overtime compensation, and otherwise failed to comply with all applicable labor laws with respect to these Service Employees. 

As defined by Ecolab’s comprehensive corporate policies and procedures, the primary job duty of maintenance workers employed by Ecolab was and is to provide repair, maintenance, and installation services on leased commercial machines in accordance with Ecolab’s established specific procedures and protocols which govern and control every aspect of the work performed by the Service Employees. The primary job duty of these service employees was not and is not to make sales and/or obtain orders or contracts for services. 

As a result, the employees claim that they do not meet the tests of an overtime exemption under either California law or the FLSA and are entitled to overtime compensation for all the hours they worked in excess of eight in a workday and forty in a workweek. 

For further information about this overtime lawsuit filed against Ecolab, contact employment law lawyers in San Francisco. You can also contact our labor lawyers in the San Jose Area

California Employment Lawsuit Filed Against Lockheed Martin

Rix vs. Lockheed Martin Corporation, Case No. 3:2009cv02063, an employment lawsuit, was filed on September 21, 2009 against Lockheed Martin in the Southern District of California by industrial security employees. The security employees allege that as a matter of company policy, Lockheed Martin unlawfully classified every Industrial Security Representative as exempt from overtime pay based on job title alone and failed to pay the Industrial Security Representatives overtime compensation as required by California overtime laws and the Fair Labor Standards Act.


Under California overtime laws, employees are entitled to overtime compensation at one and a half times the regular rate of pay for all hours worked in excess of eight in a workday or 40 in a workweek. This California overtime rule does not apply when employees exercise a requisite level of independent discretion and judgment because when employees have the freedom to make decisions that impact the company in significant manners, the employees can usually be classified as exempt administrative employees.

The Industrial Security Representatives believe they are nonexempt from overtime pay and therefore have been cheated out of overtime wages because Lockheed Martin has established specific procedures and protocols in the form of the National Industrial Security Program Operating Manual and project specific security classification guides which govern and control every aspect of the work performed by the Industrial Security Representative. These centralized rules mirror the realities of the workplace evidencing a uniformity of work among the Industrial Security Representative and negate any exercise of independent judgment and discretion, which would mean that the overtime exemptions do not apply to the Industrial Security Representatives. 

For further information about this lawsuit contact an employment law lawyer in San Diego or an overtime wage lawyer in San Francisco


California Overtime Rights - Call Center Customer Support Workers

Call Center Customer Service Employees
A call center is a central customer service operation where employees, usually with the job titles of "customer care specialists" or "customer service representatives" handle telephone calls for a compamny regarding technical support or the sale of products and goods. Call center customer support employees are used in many different sectors of business, including mail-order catalog houses, telemarketing companies, computer product help desks, banks, financial services and insurance groups, transportation and freight handling firms, hotels, and information technology (IT) companies.

Call center customer support workers are entitled to the benefit of California labor laws. Under CA labor laws, companies are required to keep records of the wages and hours that call center employees work for the employer’s benefit. Our employment law lawyers often find that call center customer service employees do not receive the accurate itemized wage statements clearly revealing all of the information that is required by California labor laws and regulations.

A major issue with respect to the wage and hour rights of call center workers is that employers fail to pay them for all hours worked. Hours worked includes all time an employee must be on duty, or on the employer's premises or at any other prescribed place of work, from the beginning of the first principal activity of the workday to the end of the last principal activity of the workday. This includes the time call center workers spending booting up and shutting down their computers pre-shift and post-shift. An example of common violations is when employees working in call centers spend time starting computers before shifts to download work instructions, computer applications, and work-related emails.

A major issue in the call center industry is that many companies pay customer service workers a salary without additional overtime pay for working more than eight hours in a workday or forty hours in a workweek. A salary, by itself, does not exempt employees from the minimum wage or from overtime. Whether employees are exempt from minimum wage and/or overtime depends on their job duties and responsibilities as well as the salary paid. Sometimes, in call centers, salaried employees do not meet all the requirements specified by the regulations to be considered as exempt.

Contact a San Diego employment law lawyer today for a free consultation about your overtime rights in the San Francisco or Southern California.

Overtime Rights for Drivers and Outside Salespersons

Under California overtime laws, employees are entitled to make extra compensation for working: 
  • Overtime for working more than 8 hours in a single workday

  • Overtime pay for working more than 40 hours in a workweek under the FLSA

  • Overtime pay for working 7 consecutive workdays 

  •  Overtime pay for working more than 12 hours in a single day at double the regular rate of pay 

Many employers in California classify drivers as exempt from overtime pay, meaning that the employers fail to pay the drivers overtime wages. This can add up to a lot of unpaid wages if the drivers are working long hours. Under state overtime laws, when drivers deliver products in addition to selling product, the drivers are entitled to overtime pay unless their primary duty is actually making sales.
If you are an outside salesperson or a driver and not paid overtime wages, here are some factors you should look at to see if you are entitled to overtime wages under state labor laws and the Fair Labor Standards Act:
  •  Is your primary duty actually making sales?

  •  Compare drivers at your company making sales with other employees who make sales for the company

  •  Look at whether there are set standards for the amount of products the drivers are required to deliver

Employees in California that are making outside sales and not supposed to be making overtime pay under state labor laws must be making the sales at the customer’s place of business as opposed to the employer’s business over the phone. Similarly, employees are entitled to overtime pay if they are making sales by mail or the internet.  Importantly, even if you work from home making sales you are not considered an outside salesperson but instead an inside salesperson and therefore unless at least fifty percent of your total income comes from commissions, you are entitled to overtime wages. 

Promotional work is usually not considered making sales for purposes of California overtime laws. According to the Department of Labor and the Division of Labor and Standards Enforcement, “Promotional work that is actually performed incidental to and in conjunction with an employee’s own outside sales or solicitations is exempt work” but promotional job duties that are performed incidental to the sales that another employee is going to make is not the type of work that disqualifies the employees from overtime pay and therefore the employees are entitled to overtime pay.

Want to know if Your Current or Former Employer Owes You Overtime Pay under California Overtime Laws?

Want to know if your current or former employer owes you money for failing to pay you the proper amount of wages as required by California law? Here are a few examples of the types of wage and hour schemes employers use to cheat employees out of wages:

Under labor laws, courts often find that employees have a valid wage and hour overtime law claim when employers use a flag rate or piece rate compensation scheme. In particular, employers often violate state labor laws by failing to pay workers for the time they spend attending meetings and training sessions. Furthermore, many California employers are liable to employees for penalties when the employer’s fail to pay for time spent setting up work stations and booting up and shutting down computers. 

Employers also frequently implement illegal comp time schemes. A comp time scheme is one where the employer fails to pay the employee overtime wages for working more than 8 hours in a workday or forty hours in a workweek because the employer tells the employee he or she can leave early the next day. For example, suppose an employee works 10 hours on Monday and the employer says you can leave two hours early tomorrow and we will mark the timekeeping system so that it looks like you worked two 8 hour days. Under California overtime laws, the employee is losing two hours of overtime pay because on Monday the employee should have been paid one and a half times the regular rate of pay for working hours 9 and 10.

Another major problem is that employers implement alternative workweek schedules without conducting a valid election process which violates the California labor law. These types of illegal employment practices often occur in the San Francisco Bay Area

Some illegal employment law practices in Southern California often involve failing to compensate employees for travel time and time spent working off the clock from home, sending emails and making phone calls. Not only is it against California labor laws to not pay employees for time worked from home when they are non-exempt, but employers must also reimburse employees for the work-related expenses as well. 


HERE ARE A FEW IMPORTANT CALIFORNIA LABOR CODE LAWS RELATING TO OVERTIME, WAGES AND HOURS OF WORK

Daily: Work in excess of eight hours in a workday shall be compensated at the rate of one-and-one-half times the regular rate of pay. Work in excess of 12 hours in a workday shall be compensated at the rate of double the regular rate of pay.

Weekly: Any work in excess of 40 hours in any workweek shall be compensated at the rate of one-and-one-half times the regular rate of pay.

Seventh consecutive workday: The first eight hours of work on the seventh day of work in any workweek shall be compensated at the rate of one-and-one-half times the regular rate of pay, regardless of the number of hours worked during the previous six days. Every hour worked after eight hours on the seventh consecutive workday in any workweek is paid at double the regular rate of pay.

Makeup time: If an employer approves an employee's written request to make up work time that is or would be lost as a result of a personal obligation of the employee, the hours of the makeup-work time may not be counted towards computing the total number of hours worked in a day for purposes of daily overtime, except for hours in excess of 11 per day or 40 per week. This applies only if the makeup time hours are performed in the same workweek in which the work time was lost.

Amount of Overtime Pay

The overtime pay rate is one-and-one-half times the regular rate of pay for work in excess of eight hours per day or 40 hours per week and for the first eight hours worked on the seventh consecutive workday; two times the regular rate of pay for work in excess of 12 hours per day or in excess of eight hours on the seventh consecutive workday.