A staffing firm in New Bedford, New Jersey was forced to settle a class action suit after it was alleged it had an employee working at two different locations but didn’t pay overtime. The company admitted no wrong doing but ended up paying $42,000 to settle.
In this case, the employee ended up working more than 40 hours a week at both a car wash and a fish processor. Not only was there failure to pay overtime, but both these jobs are in different class codes. Whether the employer was deliberately negligent, or just careless, is unknown.
But if a staffing firm has employees working at multiple locations or in different class codes, keeping close tabs on those class codes and hours will help avoid the legal pitfalls of non-compliance. Class codes have an impact on your workers’ comp premiums, which are determined by both risk and payroll.
LeastStaff has many workers’ comp and general insurance solutions to keep your insurance rates as low as possible.