Misclassified Employees Could Be Owed Significant Overtime Back Pay

February 27, 2013  |  Employment Law, Overtime Violations

In today’s economy, a family’s income is often stretched so thin that every dollar counts. Many workers are willing to work long hours under poor conditions just to keep their income and support their family members. Unfortunately, some employers are taking advantage of their workers’ willingness to work by knowingly misclassifying them as independent contractors instead of employees and denying them overtime pay. 

According to the Fair Labor Standards Act (FLSA), an employee who is “economically dependent” on a company for their income is an “employee,” not an “independent contractor,” and a full-time employee who works over 40 hours in a workweek is covered by the FLSA  overtime laws. Even if your employer makes you sign a contract waiving overtime pay or stating that you are an independent contractor, the contract isn’t recognized under the FLSA if the actual facts of the relationship show that you are really an employee. Some employers, such as MHN Government Services, Inc. (MHNGS) and Managed Health Network, Inc. (MHN) have misclassified their workers as “independent contractors” instead of “employees.” But the national law firm of Baron and Budd recently filed a class action lawsuit against MHN and MHNGS for the company’s misclassification of worker status. That lawsuit seeks back overtime wages and other damages for the time period of October 2009 forward.

MHN is a subcontractor of the United States Department of Defense and operates at and around various U.S. military bases. MHN employs workers as Military and Family Life Consultants (MFLC’s) who offer behavioral health services to military personnel. Baron and Budd attorneys Allen Vaught and Mark Pifko filed a class action lawsuit against MHN for misclassifying MFLC’s as independent contractors when they should have been classified as employees and paid overtime compensation for all hours worked over 40 per workweek. 

Baron & Budd is also investigating similar claims for MFLC’s who worked for Magellan and Delta T, two companies similar to MHN who also misclassified their workers as independent contractors to avoid paying overtime compensation. 

If you are a current or former MFLC and believe you have been denied your rightful overtime wages or other rights, please feel free to contact us to learn more about your rights. Contact Baron and Budd at 1.866.844.4556 or click here to send us an email.

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