A Malvern, PA newsletter publisher that has employed a number of Delawareans over the years, has been cited by the U.S. Department of Labor and a federal judge for work break violations.
According to the U.S. Department of Labor a federal judge recently found the defendants in violation of the Fair Labor Standards Act, and ruled that American Future Systems, doing business as Progressive Business Publications, and its owner, Edward Satell, are liable for pay back wages resulting from unpaid bathroom and other breaks, plus an equal amount in liquidated damages.
The firm has hired editors, writers and telemarketers from Delaware and the area over the years. The bulk of the employees are in telemarketing.
The Labor Department estimated that for violations occurring through June 2013, Progressive and Satell are liable for at least $1.75 million in back wages and liquidated damages to more than 6,000 employees who worked in 14 call centers throughout Pennsylvania, New Jersey and Ohio. Progressive’s refusal to come into compliance for more than two years during the course of the litigation will increase significantly the amount of back wages and damages due its employees as a result of its illegal pay policy, a release stated.
“For far too long, American Future Systems penalized its employees for taking breaks to meet the most basic needs during the work day – stretching their legs, getting a glass of water or just using the restroom,” said Jim Cain, district director for the department’s Wage and Hour Division. “The judge’s decision reaffirms how clear the FLSA is about short breaks being compensable, and goes a long way in making these employees whole by awarding liquidated damages.”
The mid-Decembrt decison by a judge in the U.S. District Court for the Eastern District of Pennsylvania, the decision resolves the primary issues in a department lawsuit filed after a Wage and Hour Division investigation found that telemarketers had to clock in and out for every break, even those as short as two to three minutes, a Department of Labor release stated. The timekeeping system then deducted the break time from their total hours worked each week. The Wage and Hour Division advised the company that the practice violated the law, but the employer failed to comply, the release stated.
The Wage and Hour Division’s Philadelphia District Office conducted the investigation. Attorneys in the department’s Philadelphia regional solicitors’ office litigated the case.
American Future Systems is the parent company of Progressive Business Publications, a direct marketing company. Progressive Business Publications publishes subscription-driven, business-to-business newsletters and other publications on business management, sales and marketing, human resources and employment law.
The FLSA does not require lunch or coffee breaks. However, when employers do offer short breaks (usually lasting about 5-to-20 minutes), the law considers the breaks compensable work hours that must be included in the sum of hours for the work week and considered in determining overtime, the Labor Department release stated.
