HR Consulting Firm in Deep Trouble for Screwing up Overtime

Posted April 29, 2016 by Mary McGinley

The Department of Labor has cited a California-based Human Resources consulting firm and ordered them to pay $1 million in back overtime wages and damages to hundreds of employees following an investigation by the federal agency.

According to the documents, the Department of Labor’s Wage and Hour Division found widespread violations of the Fair Labor Standards Act by TriNet Human Resources Corporation for having failed to pay time-and-a-half to some 267 employees who had worked more than 40 hours per week. TriNet will have to pay back pay wages and damages to workers in amounts ranging from a few hundred dollars to having to pay one worker more than $13,000.

The division also assessed $58,000 in civil penalties for the violations against TriNet Human Resources Corp.

Susana Blanco, the division’s Wage and Hour director based in San Francisco, said in a press release, “TriNet falsely believed that raising an employee’s salary exempted them from receiving overtime pay. Hopefully, the company will now pay better attention to the rules going forward and pay its employees the wages they earned.”

This is not the first time that TriNet has been cited for similar violations. In 2012, the company had to pay $326,000 in back wages and damages after similar violations were found.

HR professionals and payroll service companies should know and follow the law. Employment law varies from state to state or even city to city and you must know what the requirements are in order to stay within the law. At Einstein HR, we know employment law and we can help you not only get the right person for the job, we make it our business to know all of the laws that can affect you and your company.

We are here to help find and fulfill the HR needs of your company and to make sure that you are in compliance with the law. Contact us today at 770-962-1700 to find out how we can help.