Los Angeles-based Farmers Insurance to pay more than $1.5 million in back wages to nearly 3,500 employees following US Labor Department investigation
LOS ANGELES — Los Angeles-based Farmers Insurance Inc. has agreed to pay $1,520,705 in overtime back wages to 3,459 employees following an investigation by the U.S. Department of Labor's Wage and Hour Division that disclosed significant and systemic violations of the federal Fair Labor Standards Act's overtime and record-keeping provisions. Violations occurred at 11 customer service call centers located in Florida, Kansas, Michigan, Oklahoma, Oregon and Texas. "Failing to properly compensate employees for pre- or post-shift work is a violation of federal law," said Secretary of Labor Hilda L. Solis. "The Labor Department is committed to ensuring that employers abide by the law so that workers are protected against exploitation, and law-abiding employers are not placed at a competitive disadvantage." Through interviews with employees and a review of the company's timekeeping and payroll systems, investigators found that the company did not account for...