Eight-figure landmark award over unpaid 'work'
East Penn Manufacturing Co., Inc., one of the world's largest battery manufacturers, has just been hit a significant legal setback – over the time its workers took to put on protective gear and shower. A federal jury returned a verdict of over $22 million against the company, marking the largest award under the Fair Labor Standards Act (FLSA) to date.
The jury's decision stemmed from East Penn's violations of the FLSA, the federal law that establishes standards for minimum wage, overtime pay, recordkeeping, and child labor in both private and public employment. The case, Su v. East Penn Manufacturing Co., Inc., involved over 7,500 East Penn employees who sought unpaid overtime wages.
The lawsuit, initiated by the U.S. Department of Labor (DOL) in 2018, alleged that the company failed to compensate employees for time spent changing into and out of protective gear and showering, measures taken to mitigate workplace hazards like lead exposure. The DOL argued that this time should be considered as hours worked and subject to overtime compensation.
Early in 2023, the U.S. Supreme Court ruled that a former Helix Energy Solutions Group oil rig worker who made $200,000 annually is entitled to overtime pay despite the employer’s claim that legislation prohibits that.
In a significant development, a 2021 summary judgment ruling favored the DOL on its FLSA claim. The court determined that East Penn did not dispute employee testimony...
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