WASHINGTON (April 27, 2016) — A U.S. Department of Labor (DOL) order that a human resources outsource provider pay $1 million in back wages — which comes shortly before expected new overtime regulations — shows no one is immune from an investigation by the agency, says an expert.
Last week's announcement by the DOL's wage and hour division that San Leandro, Calif.-based TriNet Human Resources Corp. must pay the million dollars comes just before the DOL's expected announcement in May of a final overtime rule.
TriNet said it disagreed with the DOL's assessment.
The DOL said TriNet must pay the $1 million for failing to pay time-and-a-half to 267 employees who worked more than 40 hours per week.
As a result, said the DOL, the company will pay back wages and damages to workers in amounts ranging from a few hundred dollars to more than $13,000 per worker. The division also assessed $58,000 in civil penalties for the violations.
In 2012, the company paid $328,000 in back wages and damages after the division found similar violations, according to the DOL.
“TriNet falsely believed that raising an employee's salary exempted them from receiving overtime pay,” said Susana Blanco, the division's wage and hour director in San Francisco, in a statement, “Hopefully, the company will now pay better attention to the rules going forward and pay its employees the wages they earned.”