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Unpaid Overtime Lawsuit Filed Against Schutz Container Systems

By Coffman Legal, LLC | Posted on Feb 03 2022

Our experienced unpaid overtime lawyers filed a Collective and Class Action Lawsuit against Schutz Container Systems (“Schutz”), for failing to compensate its hourly employees for all overtime wages earned. We allege that Schutz did not pay all overtime as a result of its 1) failure to pay for all work (including work performed outside of employees’ scheduled shifts); 2) failure to pay for short rest breaks of less than 20 minutes; (3) failure to include non-discretionary performance bonuses into their regular rates of pay for purposes of calculating their overtime rates of pay; and (4) deductions for uniforms and/or other tools of the trade.

On December 29, 2021, the law firm of Coffman Legal, LLC filed a Collective and Class Action Complaint against Defendant Schutz on behalf of hourly production employees for the alleged failure of Schutz to compensate its hourly employees for all overtime wages earned in violation of the Fair Labor Standard Act (“FLSA”).

The Complaint alleges that Schutz requires its production employees to arrive at the facilities prior to the start of their scheduled shift to engage in pre-shift work before the scheduled start of their shifts and post-shift work after the scheduled end of their shifts. Nevertheless, Schutz generally pays employees based on their scheduled shifts, rather than based on their time punches which reflect the time that its employees spent working.  The Complaint further alleges that Schutz failed to pay employees for short rest breaks of 20 minutes or less. Next, the Complaint alleges that Schutz failed to include non-discretionary performance bonus payments in its calculation of employees’ regular rates of pay for the purposes of overtime. Finally, the Complaint alleges that Schutz violated the FLSA by taking deductions from employees’ pay for tools of the trade, including deductions related to uniforms.

The FLSA requires an employer to pay employees for their work suffered or permitted, including work performed outside of their scheduled shifts. Further, the FLSA provides that short breaks of 20 minutes or less must be counted as work hours. Moreover, the FLSA requires employers to include non-discretionary bonuses in their employees’ regular rate of pay calculations to determine the correct overtime rates of pay. Lastly, the FLSA does not allow employers to take deductions from employees’ overtime wages to pay for tools of the trade, such as uniform deductions.

This lawsuit provides an example of various ways in which an employer like Schutz may underpay its employees in several ways that allegedly violate the FLSA. This unpaid overtime adds up over the course of weeks and years.  The FLSA sets forth the minimum compensation employees must be paid, and non-exempt hourly employees are entitled to receive full and proper compensation under the FLSA.

The lawsuit seeks unpaid overtime wages since December 29, 2018, liquidated damages in an amount equal to the unpaid overtime, attorney’s fees, and costs, among other things. The lawsuit was filed in the U.S. District Court for the Northern District of Ohio, Western Division (Toledo) and is titled Balderas v. Schutz Container Systems, Inc.; Case No. 3:21-cv-2427.

Additional information about the unpaid overtime collective and class action against Schutz may be found by contacting our office by calling 1-614-949-1181 or emailing mcoffman@mcoffmanlegal.com. If you have any questions about whether you are being properly paid for all of the compensable hours you work, then contact our office today to speak with our experienced overtime attorneys regarding any wage and hour issues, including unpaid overtime.

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