Double Shifts, Double Companies, No Overtime Pay May Equal Double Trouble
If the allegations of a recently filed class action complaint are true, defense contractor Michael Bianco, Inc. of New Bedford, MA, got too cute in its effort to avoid paying overtime wages to its workers.
The Boston Herald reports that about 500 workers, many of them illegal immigrants, are members of the class.
The lawsuit alleges that Bianco created a second firm, Front Line Defense, also listed as being in New Bedford, and used that firm to pay employees who worked a second late shift each day. Michael Bianco checks were issued for the work done in the morning, said the suit.
Front Line Defense allegedly was a shell corporation. Thus, say the plaintiffs, they were paid base rate for all hours worked even though they were entitled to time and a half for hours in excess of 40per week. You have to give Bianco some credit for creativity, but if it loses it will wish that it had arranged its pay practices in a more conventional way.
We note that Bianco denies the allegations and will keep you advised of developments.