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Unpaid Overtime



St. Paul, MN: (May-16-08) A class action lawsuit was brought against Hutchinson Technology Inc., by employees who claimed that they were owed unpaid wages by the company. The suit stated that workers were not paid for the time it took them to put on or take off protective clothing at the beginning and end of each work day and for meal breaks. Attorneys argued that this practice was a violation of the federal Fair Labor Standards Act and certain Minnesota, Wisconsin and South Dakota statutes.

The plaintiffs originally maintained that they spent 10 to 15 minutes putting on and taking off gear such as hairnets, facemasks, smocks, latex gloves and beard guards each day. The gear is required to maintain a clean work area for the manufacturing of suspension assemblies for computer disk drives. In its defense, the company stated that it had not broken any law, and that the amount of time at issue was less than two minutes per day. It further said that there was a degree of flexibility as to when employees arrived for or left from work so that on any given day many employees were putting on and taking off protective gear on the clock.

As part of a settlement reached, the company set aside $2.5 million, to resolve the class action lawsuit. Sources estimate that close to 5,600 current and former production employees of the company's plants in Minnesota, South Dakota and Wisconsin stand to receive a payout from the settlement fund. Additionally, the deal also calls for the plaintiffs' attorneys to be awarded fees of $625,000 and reimbursement for costs not to exceed $90,000. [HUTCHINSON LEADER: HUTCHINSON TECHNOLOGY, EMPLOYEES REACH SETTLEMENT IN WAGE DISPUTE]


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