The LA times reveals that the California labor commissioner has sued ZipRealty for nearly $18 million in a minimum wage case. At issue, the failure of the company to pay minimum wages and overtime compensation to hundreds of agents throughout the state.
Both federal and state laws set forth certain minimum wage and overtime standards applicable to nearly all U.S. employers. Federal minimum wage law – the Fair Labor Standards Act – requires that workers be paid a minimum $7.25 hour. California’s minimum wage is currently set at $8.00, and worker’s are entitled to be paid at this higher amount.
Even with the higher minimum wage, studies reveal that the 20% of American adults who earn $10.65/hour or less, even at 40 hours a week, this amounts to less than $22,314 the poverty level for a family of four.
ZipRealty is a real estate company that makes sales both statewide and nationally on the Internet, while relying on on-line employees to respond to questions and close on the deals. A stated by the California Labor Commissioner “In times like these, enforcement of the minimum wage is critical to maintaining a floor that allows workers to survive.”
Added the director of the state Department of Industrial Relations, “This case is a symptom of growing problems in the recession-wracked labor market.” Violations of minimum labor standards are now occurring in a wide variety of occupations.”