FedEx Class Action Lawsuit for Overtime Pay Violation

FedEx has been sued with a class action by employees in New Jersey federal court alleging failure to pay them overtime they earned for time spent going through security screenings each shift.

The employees claim that FedEx should have counted the time spent in the security screenings toward their compensation which violates New Jersey wage laws. FedEx’s “failure to pay them for the additional time spent in the screenings resulted in defendant paying plaintiffs less than one and one-half times their regular rate for all hours worked over [40],” the complaint says.

J. Chiu, an hourly FedEx Ground employee in New Jersey, filed the complaint on behalf of the workers. Chiu regularly put in more than 40 hours per week, according to the complaint.

Chiu and other workers had to go through a security screening before clocking in and again at the end of the day after clocking out, the complaint alleges. Chiu alleges that the company should have known that its failure to pay for the screening time violated the New Jersey State Wage and Hour Law.

Workers at Apple and Amazon have previously sued over similar security line pay claims. In February, the California Supreme Court said the time Apple workers spent in security screening was compensable, and in April, Amazon settled with workers in Kentucky federal court over the claims for $11.1 million.

Common Ways Employers Violate Wage & Hour Laws

We, at Burnham Douglass Attorneys At Law are dedicated to championing the rights of employees.

It is important to keep in mind that there are six common wage and hour violations by employers which are:

  1. Misclassification: Misclassifying employees and contractors which means they don’t get the minimum wage or overtime they’re entitled.
  2. Minimum Wage Violations: Failure to pay minimum wage which notoriously occurs in the restaurant and retail industry.
  3. Overtime Violations: Failure to pay overtime – the laws mandate that the majority of employees be paid time-and-a-half when they’ve worked more than 40 hours in a given week. For these additional hours, workers must be paid at one-and-a-half their “regular rate,” which also includes any commissions or bonuses they earn during that week.
  4. Off-the-Clock Work: Not paying hourly employees for off-the-clock work so that time worked off the clock such as responding to emails has to be counted.
  5. Illegal Paycheck Deductions: Taking illegal deductions such as deducting items such as cost of uniforms, drawer shortages, damaged equipment and customer theft from pay.
  6. Tip-Related Violations: Incorrectly paying tipped employees or stealing tips – the lowest cash age an employee can pay an employee who gets tipped is $2.13 an hour; and, an employer who steals tips is criminal but in some cases an employer can put tips into a common tip pool, which is perfectly legal.

Are You Owed Overtime from Your Employer?

If your New Jersey employer violated wage and hour laws, let our experienced employment attorneys review your case. We have offices in Northfield and Marlton, and are ready to represent mistreated employees across New Jersey.

Call 856-751-5505 or send us a message online to request a consultation