Oklahoma Employer Ordered to Pay $72,000 for Misclassifying Retail Workers and Denying Overtime (Insurance Journal)

Oklahoma Employer Ordered to Pay $72,000 for Misclassifying Retail Workers and Denying Overtime

Tuesday, December 3rd, 2024 Legislation & Regulation Litigation Risk Management Workers' Compensation

The U.S. Department of Labor secured a consent judgment requiring Rob’s Sod Inc. and Cook’s Farmland Enterprises LLC to pay $72,000 in back wages and liquidated damages to 20 employees. These workers were denied overtime pay because the employer misclassified them under the agriculture exemption, despite their retail roles at the company’s locations in Grove, Lawton, Owasso, and Stillwater, Oklahoma.

The judgment, entered by the U.S. District Court for the Northern District of Oklahoma, follows an investigation by the Department of Labor’s Wage and Hour Division. The investigation revealed that employees often worked more than 40 hours weekly without receiving proper overtime compensation. The company also operates extensive agricultural lands across Oklahoma, Texas, and Missouri, alongside 10 retail outlets.

The judgment serves as a reminder to employers of the legal requirements under the Fair Labor Standards Act (FLSA). Misapplying exemptions can lead to costly penalties and harm employee trust. Employers are encouraged to carefully review their payroll practices to ensure compliance.


External References & Further Reading
https://www.insurancejournal.com/news/southcentral/2024/12/03/803352.htm
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