January 26, 2009

That’s Stinky! Improper Job Classification Puts Potty Company in Deep Doo-Doo

Filed under: Legal Issues — Tags: , — Jane @ 8:00 am

Who knew that there would be HR lessons to be found in the world of porta potties? Apparently wage and hour law knows no bounds. According to the New York Daily News, a portable potty company, Call-A-Head, has found itself in the middle of a class action lawsuit. Employees claim that they were required to clean 100 toilets each day, which often took 15 hours to complete although they were paid for 10 hours daily. It’s alleged that the company had used hiring ads offering to pay $1000 weekly for 4 ten hour days of work. It is also claimed that employees were required to clock in but couldn’t clock out. The employees are seeking back overtime which could be over $1 million. The company denies the charges.

What can be learned from this case so that you can avoid flushing your profits along with your reputation in a Fair Labor Standards Act (FLSA) lawsuit?

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