Market Overview

Baron & Budd Investigating Conn's Appliances for Potential Overtime Violations

Share:

Retailer violated Fair Labor Standards Act, according to U.S.
Department of Labor

Today, the national law firm of Baron
& Budd
announced that it is investigating cases on behalf of
current and former Conn's Appliances employees who may not have been
paid all wages due to them. On August 9, the U.S. Department of Labor announced
that Conn's will pay $540,870 in back wages and liquidated damages to
1,991 employees to settle overtime violations of the Fair Labor
Standards Act (FLSA). Current and former employees of Conn's who have
not signed a release with the U.S. Department of Labor (DOL) may be able
to recover more unpaid wages and penalties through private FLSA and
state-level claims.

Based on an investigation conducted by the DOL, it was discovered that
Conn's potentially failed to include commissions and bonuses when
calculating overtime rates for some hourly employees. That resulted in
an underpayment of overtime wages owed under the FLSA according to the
DOL. Also, the DOL found that some expenses deducted from employee pay
for uniforms and paperwork processing mistakes resulted in an
underpayment of overtime wages under the FLSA.

"Employees' time is valuable and should be fully compensated under state
and federal wage laws," said Allen
Vaught
, head of the Employment Law Group at Baron & Budd. "The law
has been clear for a long time that commissions and performance type
bonuses must be included by employers in calculating the total overtime
wages owed. Furthermore, while employers may make expense deductions in
some situations, those deductions cannot cut into overtime wages owed or
result in an employee's average hourly pay dropping below $7.25 per
hour. We intend fully investigate these alleged overtime violations and
will work hard to ensure that any employees who were not paid fairly
receive the compensation that they are owed under state or federal law."

The DOL investigation of Conn's involved the federal FLSA. However,
employees who worked for Conn's in certain states, such as New Mexico,
Colorado, and Nevada, may have additional state law overtime
protections. Some states, such as New Mexico, require employers to pay
the employee three times the unpaid overtime wages plus legal fees and
costs.

Individuals generally must have been an employee of Conn's within the
past three years to have a potential claim for unpaid wages and damages.

The maximum look back period as stated in the FLSA is three years. In
other words, if a claim was filed today, back wages and damages could be
sought from August 24, 2015, and forward until the earlier of the end of
employment or end of the wage practice in question.

Headquartered in The Woodlands, Texas, Conn's Inc. (NASDAQ:CONN) is a
specialty retailer that currently operates 119 locations across the U.S.
The company states that it is one of the top consumer goods retailers in
the country, with more than $1 billion in revenue and more than 4,500
employees across the southern United States.

ABOUT BARON & BUDD, P.C.

Baron & Budd, P.C. is among the largest and most accomplished
plaintiffs' law firms in the country. With more than 35 years of
experience, Baron & Budd has the expertise and resources to handle
complex litigation throughout the United States. As a law firm that
takes pride in remaining at the forefront of litigation, Baron & Budd
has spearheaded many significant cases for hundreds of entities and
thousands of individuals. Since the firm was founded in 1977, Baron &
Budd has achieved substantial national acclaim for its work on
cutting-edge litigation, trying hundreds of cases to verdict and
settling tens of thousands of cases in areas of litigation as diverse as
dangerous pharmaceuticals and defective medical devices, asbestos and
mesothelioma, environmental contamination, fraudulent banking practices,
motor vehicles, employment law, and consumer fraud issues.

View Comments and Join the Discussion!