Workers Win $10 Million Settlement for Overtime Violations

After a two-year battle, workers employed by Source Refrigeration & HVAC, Inc., finally see a light at the end of the tunnel. U.S. District Judge Vince Chhabria issued a final approval in August for a $10 million settlement in favor of the workers. These workers did not receive their rightful overtime compensation while employed by the company. Source Refrigeration & HVAC, Inc., is a national refrigeration company that provides repair and maintenance for refrigeration units used to store food. The company allegedly failed to properly compensate over 1,000 of its service technicians.

4 Allegations Made Against Source Refrigeration for Overtime Violations

During the course of the lawsuit, the workers accused the company of systematically underpaying its employees by using various illegal wage practices. The service technicians made several allegations against Source Refrigeration, including the following:

  1. The company miscalculated overtime rates for technicians in California, Florida, and Georgia. For example, the company illegally treated the higher hourly pay rates employees received for working nontraditional shifts as premium overtime pay in order to satisfy the Fair Labor Standards Act’s overtime requirements. The higher pay rates are actually shift differentials because they were not contingent on other hours worked during the same week.
  2. The company failed to pay employees for meetings, on-call evening and weekend time, and other required work activities, including time between job assignments where the employees were restricted as to how they could use that time.
  3. The company violated the Fair Labor Standards Act by excluding shift-differential pay from the regular pay rate.
  4. The company violated the California Labor Code’s meal and rest period requirements.

Fortunately for the workers, the court held that the size of the settlement is “rationally related to the strength of the plaintiffs’ claims given the risk, expense, complexity, and duration of further litigation.” Galvin B. Kennedy and Gabriel Assaad were among the attorneys representing the technicians.

To learn more about pursuing a wage or overtime lawsuit, we encourage you to contact us today at 855-947-0707 for more information.