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New York Employees of Paychex, Inc. Seek Overtime Compensation |
Case ID: 3101 | Employment |
A statewide class and collective action has been filed in New York against payroll giant, Paychex, Inc. The action is brought on behalf of all current and former employees who, since December 22, 1997, worked in either inside insurance sales or payroll service sales and were not paid overtime compensation. The action is brought under both New York labor law and the federal Fair Labor Standards Act and seeks back pay, statutory and liquidated damages as well as injunctive and declaratory relief. As a collective action, all potential claimants are required to voluntarily "opt-in" to be a considered a member of the class. The employees have requested that the court issue notice to all potential claimants. This action arises from what employees claim is a systematic and intentional scheme to deprive hourly employees of proper statutory overtime compensation. Under both the federal Fair Labor Standards Act and New York labor law, all "non-exempt" employees are entitled to, at a minimum, time and a half for all hours worked beyond 40 per week. The Paychex employees, who worked inside sales positions in payroll and insurance service, claim that they were non-exempt, were paid hourly. They assert that Paychex, one of the nation’s largest payroll and tax service providers, was well aware that they were entitled to overtime compensation. The employees allege that Paychex willfully and intentionally failed to pay overtime, that it was, in fact, corporate policy. This, they claim, entitles them to liquidated damages under the Fair Labor Standards Act in addition to compensatory and statutory damages under federal and state law.
4 comments:
I saw this too, but it is posted by a company that wants to make money, not by any other news media or government agency. If you can find a REAL case and the outcome, I would LOVE to see it, but otherwise, it is BS or if it isn't it is very OLD, not something new. I looked for HOURS to find the or a real case regarding Paychex and Overtime and I found nothing to back this up. Please do email me if you get something real though...
RE: Mitchell vs. Paychex
This was finally settled in September of '07 when the employees of The Paychex Agency(100) and National Sales Support (300) shared in 5.5M payout over compulsory overtime. The current employees had to sign a confidentiality agreement to receive payment, which maxed out at 200k per employee. Paychex wanted to keep this quiet, as terms of the settlement.
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