Ugh. HR consultant hit for $1MM in unpaid overtime

No one is immune from wage-hour payouts. Not even a Human Resources consultant.

California HR consulting firm TriNet has reportedly agreed to pay approximately $1 million in overtime and liquidated damages to 267 employees. The payment is in settlement of a wage-hour investigation conducted by the San Francisco office of the U.S. Department of Labor.

According to the DOL, TriNet increased employees' salaries and believed that the higher salaries were enough to make the employees exempt. The DOL said that TriNet had settled a similar claim in 2012.

However, a spokesperson for TriNet said that salaries were increased to reflect the employees' increased job responsibilities, not to "guarantee" that the employees would be exempt. The TriNet spokesperson said that the company cooperated in the DOL investigation and did not admit any liability.

The report of the settlement, in the April 18 edition of Bloomberg BNA, did not indicate the job titles or responsibilities of the employees who will receive the settlement. However, after visiting TriNet's website, I would guess it is IT people.

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    Of Counsel & Chief Legal Editor

    Robin also conducts internal investigations and delivers training for HR professionals, managers, and employees on topics such as harassment prevention, disability accommodation, and leave management.

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This is Constangy’s flagship law blog, founded in 2010 by Robin Shea, who is chief legal editor and a regular contributor. This nationally recognized blog also features posts from other Constangy attorneys in the areas of immigration, labor relations, and sports law, keeping HR professionals and employers informed about the latest legal trends.

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