A class action suit has been filed against EDS by that company's former and current employees seeking to collect overtime wages. The lawsuit claims that the IT solution provider giant (VARBusiness 500 No. 1) did not pay overtime to eligible employees.
The suit aims to recover unpaid overtime as well as retirement and 401(k) plan benefits credits for all current and former EDS salaried technical support employees who were allegedly misclassified by EDS as exempt during any period after October 23, 2004. Technical support employees include those whose primary duties were (or are) to install, maintain, and/or support computer software and/or hardware for EDS or its clients.
Federal overtime protections, known as The Fair Labor Standards Act (FLSA), mandate that covered employers pay employees performing service activities 1.5 times their regular rate of pay for hours worked in excess of 40 in a workweek.
In response to the suit, EDS spokesman Travis Jacobsen said, "EDS is committed to complying with all applicable labor laws, including wage and hour laws. In instances where we've learned that an employee has been misclassified, we've taken action to promptly correct the situation."
Jacobsen added that EDS will "vigorously" defend itself, but noted that as this is ongoing litigation, it would be inappropriate for to comment further.
A Web site has been created by the plaintiffs to offer further information on the case.
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