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  • Writer's picturePaul Peter Nicolai

FLSA Claims Costs Owners $550,000

US District Court of Massachusetts recently approved a class action settlement awarding former employees and their lawyers $550,000 for Fair Labor Standards Act (FLSA) violations. The owners will be personally responsible if the corporation cannot pay the $550,000.


WHY THIS IS IMPORTANT... This case was the last of several lawsuits filed against the employer for FLSA violations that involved tipped employees, overtime hours, improper designation of workers as exempt employees, and failure to pay the minimum wage. The average cost of the settlement per employee is $12,500. The owners will be personally liable if the corporation does not have assets. In a related development, it was announced that the company is selling its business.

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