The United States Department of Labor Files Lawsuit Against DirecTV for Failing to Pay Minimum Wage and Overtime
The United States Department of Labor (DOL) recently filed a lawsuit against DirecTV for alleged violations of the Fair Labor Standards Act (FLSA) and federal minimum wage laws. The suit was filed in the U.S. District Court for the Western District of Washington by the DOL’s Regional Office of the Solicitor in Seattle after the DOL’s Wage & Hour Division conducted an extensive investigation which included surveillance, interviews of employees, and extensive reviews of records.
The investigation revealed that California-based DirecTV and television servicing contractor Advanced Information Systems paid employees on a piece-rate basis, causing their hourly rates to fall below the federal minimum wage. According to the DOL, installers were not paid for all hours worked nor were they paid for overtime. The investigation also revealed that DirecTV and AIS failed to keep accurate records of hours worked and wages paid to employees in certain locations.
Under the FLSA, employers must pay employees at least the federal minimum wage of $7.25 for all hours worked and an additional overtime premium of one and one-half times the regular rate of pay for all hours worked in excess of 40 per week. The law also requires that employers maintain accurate records of employees’ wages, hours and other conditions of employment. Generally, employers that violate the FLSA are liable to employees for back wages and liquidated damages which are paid directly to affected employees.
According to Donna Hart, director of the Wage and Hour Division’s Seattle District Office, “This investigation and lawsuit hold the employer and its subcontractor jointly liable for labor violations against the affected employees.” Hart also said, “DirecTV and Advanced Information Systems both were found to be responsible, as joint employers, for underpaying these employees. The bottom line is that subcontracting labor does not absolve an employer from responsibility for compliance with federal labor laws.”
If your employer is not paying employees minimum wage or overtime, please contact Khorrami, LLP for a confidential consultation.