By Barbara Anderman  |  June 19, 2014

Category: Labor & Employment

rental car company wage and hour class action lawsuitWage and hour lawsuits are one of the fastest growing types of class action lawsuits being filed in recent years. In 2010, the Department of Labor said that nationally “there were 40,000 wage-and-hour complaints during fiscal 2010, up about 15 percent from the roughly 35,000 complaints in fiscal 2009.” That number has climbed every year since then, with the majority of wage and hour lawsuits falling into two camps — unpaid overtime and misclassification of workers as exempt.

According to California labor laws, hourly employees, which are non-exempt employees, are entitled to overtime once they pass 40 hours a week. This overtime wage is 1.5 times their regular rate of pay for all hours worked over eight hours a day. Moreover, California employers are mandated to reimburse employees for business related expenses, such as training and seminars, and are prohibited from subtracting any necessary business related expenses from the employee’s compensation. These laws are backed by the Fair Labor Standards Act (FLSA), which is also referred to as the Wages and Hours Bill, a federal statute.

However, in the past several years, millions of dollars have been paid out to settle employee wage and hour lawsuits for violations of these laws. The rental car industry is one of the most scrutinized for violating various labor laws and is facing a large number of wage and hour lawsuits. Violations include late or missed meal periods, missed rest breaks, unpaid overtime and/or vacation time, and unpaid off-the-clock work.

Fair Pay for Fair Work

In August 2013, a $7.75 million wage and hour class action settlement was approved against Enterprise Rent-A-Car over alleged wage and hour violations. In this case, a multidistrict litigation (MDL) was built from at least 15 wage and hour class action lawsuits. Again, this time in New Jersey, Avis was under fire from two employees for failing to pay overtime and other labor law violations. And in May of this year, two former Hertz employees filed a wage and hour lawsuit accusing Hertz of wrongly classifying them as management to avoid paying overtime.

Misclassification is a big piece of these unpaid overtime class action lawsuits, as employers leverage titles to cut corners in this economy. Employees are encouraged to know and understand their rights and categorization. To be classified as non-exempt, an employee must be at management level or above in title and duties. California’s state agency that deals with wage and labor violations, the Department of Labor Standards Enforcement (“DLSE”), has even launched a new website designed to notify employees of their rights and explain how to file claims.

Join a Free Unpaid Overtime Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone. Learn more and obtain a free evaluation of your case to see if you’re eligible for back pay and other compensation at the Wage & Hour, Overtime Pay Class Action Lawsuit Investigation.

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