Staffing Agency May Be Required To Pay Overtime

Is a staffing agency required to pay overtime?

Yes. According to a recent case, if you are entitled to overtime pay, it may be a violation of the Fair Labor Standards Act if a staffing agency does not pay you all the compensation you are entitled to.

In the staffing agency case, a hotel and restaurant company named “The 1760 Society Inc.” moved its employees off the company’s payroll and placed them on the payroll of a staffing company. The staffing company then paid the worker’s wages under a contract with the employer.

While still working the same number of hours and performing the same duties, the workers were then classified as “independent contractors” and no longer received overtime pay or had taxes withheld from their wages. New hires were also classified and paid improperly.

After an investigation, the Department of Labor determined that the workers were owed back wages and damages, stating that the Wage and Hour division, “wants to send a strong message that employers cannot evade their responsibility under the law by using staffing agencies or labor contractors. These business practices are not a legal way to reduce labor costs.”

Companies searching for ways to reduce costs may improperly target employee wages. If you believe you have been misclassified and are not being paid the overtime pay you are entitled to, you may have a claim under the FLSA. For more information, please contact the experienced Atlanta employee’s rights attorneys Buckley Bala Wilson Mew LLP. We are dedicated to ensuring Georgia workers receive all the compensation they are entitled to.