SAN FRANCISCO –(October 3, 2012) –Yesterday, the national law firm of Baron and Budd filed a class action lawsuit against MHN Government Services, Inc. (MHNGS) and Managed Health Network, Inc. (MHN) regarding the misclassification of employees as independent contractors and the failure to pay those employees overtime. Filed in the Northern District of California, the case alleges that MHNGS and MHN violated the Fair Labor Standards Act (FLSA) by knowingly misclassifying workers to avoid paying lawful overtime wages. Baron and Budd attorneys Allen Vaught and Mark Pifko represent the plaintiffs in the case.

“These overtime violation issues are much more common than people think,” said Allen Vaught, head of Baron and Budd’s overtime violations/FLSA litigation section. “Many companies rely on the workers’ lack of knowledge when it comes to the FLSA and actively choose to misclassify workers in the interest of saving the business money by unlawfully dodging state and federal wage and hour laws, payroll taxes, unemployment insurance taxes and other state and federal requirements.”

MHNGS and MHN work at various U.S military bases as subcontractors to the United States Department of Defense. MHNGS and MHN hire individuals to work as Military & Family Life Consultants, or MFLC’s, in order to fulfill those governmental contracts.  Though the companies label MFLC’s as “independent contractors,” analysis of the workers’ job responsibilities revealed that the workers should be classified as employees under the FLSA. Because of this misclassification, the workers were not paid overtime even though they frequently worked more than 40 hours in a workweek. Under FLSA definitions and exemption rules, these workers should have been considered employees and should have been paid overtime.

If you suspect that you, a friend or family member may have been misclassified by your employer as an independent contractor and were not paid all overtime wages required by law, please contact attorney Allen Vaught to learn more about your rights at 1.866.495.1255 or via email at avaught@baronbudd.com. Your initial consultation is free of charge and confidential.

Learn more about overtime pay violations, misclassification of employees, the FLSA and your rights in the workplace at //baronandbudd.com/areas-of-practice/overtime-violations/.

About Baron & Budd, P.C.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin and Los Angeles, is a nationally recognized law firm with over 30-years of "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, unsafe drugs and medical devices, Chinese drywall, deceptive advertising, consumer financial fraud, securities fraud and asbestos cancers such as mesothelioma. //baronandbudd.com