SEPTA Reaches $13.1M Wage and Hour Class Action Settlement

Southeastern Pennsylvania Transportation Authority has agreed to pay some 2,300 current and former employees $13.1 million to settle a wage and hour class action lawsuit.

Lead plaintiff David B. brought the unpaid overtime lawsuit against SEPTA in June 2011 over allegations the transportation agency violated the Fair Labor Standards Act (FLSA) by not paying drivers for pre-shift work.

According to the wage and hour lawsuit, SEPTA bus and trolley drivers were required to perform off-the-clock work before starting their transit runs but were not paid for that time.

SEPTA said it decided to settle with the plaintiffs to avoid the cost of further litigation, according to court filings. The parties filed a joint motion to approve the wage and hour lawsuit settlement.

The Wage and Hour Class Action Lawsuit is Case No. 2:11-cv-04047, in the U.S. District Court for the Eastern District of Pennsylvania.

Wage and Hour Violations

There are many ways companies violate labor laws but the most common wage and hour violation is the misclassification of exempt or nonexempt employees. Federal overtime laws only protect non-exempt employees from wage and hour violations.

Commonly reported labor law violations include:

• Off-the-clock work
• Excessive side work
• Unpaid overtime
• Missed meals and breaks
• Unpaid internship
• Less than minimum wage
• Unpaid wages
• Employee misclassification as exempt
• Employee misclassification as independent contractor

Under the Fair Labor Standards Act, employees have a statute of limitation of two to three years to file a wage and hour lawsuit against their employer.

FLSA Overtime Laws

The Fair Labor Standards Act was approved to protect employees from potential exploitation. According to the FLSA, workers must be paid for all hours worked unless the employee is classified as exempt.

The FLSA also states that “employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.”

Under FLSA overtime rules, employees who are full-time workers who earn less than $455 per week or $23,660 per year are covered under the federal overtime regulations. Employees within this pay grade are eligible for time and a half for all hours worked over 40 in a typical work week.

The U.S. Department of Labor recently announced a potential labor law change that would raise the non-exempt income threshold to $51,000 a year.

FLSA labor laws do not require overtime pay for weekends and holidays unless overtime is worked on those particular days. In addition, federal overtime laws guarantee that there is no limit on the number of hours an employee over the age of 16 may work in any given workweek.

Under the  FLSA, employees in positions classified as professional, executive or administration are considered exempt and therefore would not qualify for overtime pay.

Join a Free Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now