UnitedHealth To Pay $1M In Back Wages

February 14, 2011

One of the nation’s largest managed care providers - UnitedHealthcare – has agreed to pay $1M in back wages to workers as the result of claims that they denied nearly 500 workers overtime pay.

A Department of Labor investigation revealed that UnitedHealthCare was misclassifying workers, labeling some employees as “exempt” under federal law and denying them overtime pay.

Misclassification of your employment status is a very common problem among employers, affecting both small companies and large corporations.

Under Federal Law, non-exempt employees are entitled to overtime pay at a rate of one and one-half times their regular rate of pay for all hours worked in excess of 40 in a work-week. Determining whether a worker is exempt can be very confusing and frequently leads to claims of under-payment of wages.

Numerous tests exist to determine whether an employee is exempt, but generally if you make more than a certain amount of money in a week and perform certain “white-collar” work you may be exempt and not entitled to overtime, regardless of the number of hours you work in a week.

On the other hand if you are an hourly worker and the duties you perform do not fall within certain exemptions, it is likely you are entitled to overtime pay. Remember - it is the nature of the work you perform, not your job title that determines if you are exempt.

Classifying your work status can be complex - companies often get it wrong, sometimes mistakenly, other times in an effort to avoid paying employees the overtime they deserve.

If you believe you have been denied overtime pay, an experienced Georgia employment lawyer at Buckley & Klein, LLP can meet with you to discuss your situation and evaluate your next steps. Please contact our dedicated Atlanta employee’s rights lawyers today for more information.