Employees of Schneider Logistics Transloading & Distribution Inc., have filed a class action lawsuit against the company alleging it routinely failed to pay overtime to its workers.
According to the lawsuit, Schneider, which has warehouses across the country, required employees at three Mira Loma warehouses to give up their right to overtime wages. In a deal signed in 2008, employees were to work a 40-hour week through four 10-hour days. However, the lawsuit says the company did not follow the deal, instead assigning hours that ranged from 20-hours to 100-hours a week.
Alternative workweek schedules that prevent overtime are legal, as long as both sides agree to the terms. However, the lawsuit says that because Schneider defaulted on scheduling employees on four 10-hours days, they are obligated to pay overtime premiums for days when employees worked over eight hours.
Wal-Mart spokesperson Dan Fogleman said the company holds all subcontractors “to high standards” and expects every subcontractor to “comply with all applicable laws.” He also said, “From our standpoint, it is never acceptable for anyone doing work for us to violate the law,” the LA Times reported.