TAMPA, FL – An investigation by the U.S. Department of Labor led to major changes by a Tampa employer in its pay practices that have the potential to affect the lives of more than 2,000 local workers.
The investigation by department’s Wage and Hour Division found HealthPlan Services Inc. – a healthcare benefits management provider – failed to pay employees for time spent setting up their computers and logging in to software applications before the start of their shifts. Additionally, the employer failed to include bonuses in the calculation of overtime pay, which led to the payment of overtime at a rate lower than the law requires.
The department recovered $105,200 in back wages for 92 employees. In addition to paying back wages, HealthPlan Services agreed to correct its pay practices company-wide to avoid future violations of the Fair Labor Standards Act.
“Failure to count and properly pay for pre-shift work is a common violation of federal labor laws. These unpaid minutes add up and can lead to minimum wage or overtime violations. The law requires that workers to be paid every cent they are due for the work they perform,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “If employers are unsure about federal requirements regarding hours of work or payment of wages, they should contact us for information to avoid violations.”
A subsidiary of Wipro Limited, a global info technology, consulting and business process services company headquartered in Bengaluru, India, HealthPlan Services is an independent provider of sales, benefits administration, retention and technology solutions to the health insurance and managed care industries.
For more information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.