A collective class-action lawsuit was filed against home textile company Welspun recently, alleging the business failed to pay workers overtime wages.
The plaintiffs work in the Little Rock, Arkansas, branch of the company, which produces close to 350,000 tons of special pipes for the oil and gas industries each year. However, according to the complaint, the operation functions 24 hours per day, seven days per week, and workers must report at various times. As a result, the plaintiffs worked 53 hours per week for six months, but were never paid overtime wages. Per Arkansas government rules, overtime must be paid to non-exempt employees for any time logged in excess of 40 hours in a workweek.
In response, representatives from the company have stated the employees involved with the suit were classified correctly and paid according to the U.S. laws and regulations. The representatives declined any further comments regarding the case.
The lawsuits highlights the importance of companies adhering to state regulations, as failure to adequately pay workers for their time may result in similar expensive professional liability lawsuits.