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| | More Class-Action Suits in the Pipeline By John Millrany - July 17, 2001The spigot continues to pour forth settlements from
overtime-compensation suits with one of the latest resolutions involving Sparkletts
and Alhambra bottled water and those natty-looking, uniformed delivery
guys.
There are literally hundreds of similar overtime suits in
the California pipeline.
Taking the form of class-action claims, the contests center
on whether companies are cheating employees on overtime pay.
In a settlement decided July 12, more than 700 deliverers
will receive 6.6% of their total earnings between April 1996-April 2000 in a
ruling that amounts to $8 million in restitution assigned to Damone Waters
of North America, which owns Sparkletts and Alhambra. A company statement
said, “We believe settling the lawsuit was in the best interest of the company
and employees.
Pertinent to the resolution is the California law, which
exempts paying overtime to workers who spend more than 50% of their time in
sales. The company reported that it has converted several positions to
nonexempt status (subject to overtime premiums) and began paying the deliverers
hourly wages.
As recently reported by adjustercom.com, Farmers
Insurance Exchange was slapped with stiff penalties over overtime issues,
with 21st Century Insurance facing its own class-action
contest brought by two employees. |