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Texas Red Cross Employees Claim Charity Giant Robbed Them Of Overtime Pay

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Case ID: 2892 | Employment | 07/26/2004

A class action has been filed against the American Red Cross on behalf of all Texas employees, formerly paid by the hour, who have been "re-classified" as salaried employees and thus have been allegedly deprived of proper overtime compensation. The action is brought under the federal Fair Labor Standards Act, which regulates all facets of employee compensation, and is seeking damages in the form of back pay for the overtime wages the Red Cross allegedly owes the employees.

This action is brought as the result of what employees call a scheme to intentionally circumvent federal overtime requirements. The employees allege that they were all at one time paid by the hour, so that they were paid overtime compensation for all their hours over 40 a week. However, the employees allege that the Red Cross re-classified them, gave them a title and started to pay them a salary. As salaried employees, they were now not entitled to overtime pay. However, the employees claim that their job duties have not changed. This, the employees assert, amounts to an intentional violation of federal law with the objective being to defraud the employees of wages to which they are entitled.


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