Citigroup IT Contractors File Lawsuit Over Unpaid Overtime

Citigroup is facing an unpaid overtime class action lawsuit filed by three current and former information technology contractors. The Citigroup class action lawsuit alleges the bank systematically misclassified the workers as exempt from overtime wages, despite requiring them to work more than 40 hours per week.

In the recently filed collective action wage and unpaid overtime lawsuit, lead plaintiff Paulina Korenblum alleges Citigroup misclassified its information technology (IT) contractors and denied them the overtime to which they were entitled. The Citigroup unpaid overtime lawsuit filed in New York federal court claims the company violated the Fair Labor Standards Act (FLSA) when it classified the IT contractors as independent contractors and did not pay them for all of the hours they worked.

IT Contractors’ Allegations

Many companies use contract employees to provide their IT needs. Typically, contractors are either completely independent and may provide their services to any company, or they are employees of a separate employer, which staffs its employees at a company under contract. In this wage and hour lawsuit, the IT contractors were paid by a staffing company, The Judge Company Inc., under a professional payment plan.

Despite being employed, under contract with, and receiving compensation from The Judge Company, Citigroup allegedly controlled all of the work the IT contractors performed. Because the IT contractors worked exclusively for Citigroup, they believe they should have been classified as employees of Citigroup. The IT contractors claim they regularly worked more than 40 hours in a workweek at Citigroup without receiving overtime pay.

The plaintiffs seek to represent all other similarly affected past and present IT workers hired by Citigroup through staffing agencies during the past three years. The unpaid overtime lawsuit seeks damages, including recovery of all unpaid wages, for all those who opt in to the Class.

Independent Contractor: Unpaid Wages and Overtime

Many employers allegedly misclassify employees as independent contractors in an effort to save money by not having to pay certain payroll taxes, Social Security, and unemployment benefits. Independent contractors are not able to sue employers for discrimination, unpaid wages and overtime, meal and rest breaks, and more.

Despite the label of independent contractor, many times employment law dictates that the worker should actually be classified as an employee. If the courts find that an independent contractor was actually an employee, then the independent contractor gains all rights as an employee.

Employees are able to sue for unpaid overtime, wages, and missed meal and rest breaks. Courts will often order companies who have misclassified workers to compensate the workers accordingly. Companies may also have to pay heavy penalties for misclassifying independent contractors.

If you believe you are not receiving proper wage and overtime time compensation from your employer or are improperly classified as an independent contractor, you may have a wage or overtime pay claim.

The Citigroup Unpaid Overtime Class Action Lawsuit is Korenblum et al. v. Citigroup Inc., Case No. 1:15-cv-03383, in the U.S. District Court for the Southern District of New York.

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