HR company told to follow employment laws like everyone else

TriNet Human Resources Corp. is a human resources consulting company based here in California. It offers services to employers such as payroll processing, employment law compliance and employee benefits to small and medium sized companies. Recently, the Wage and Hour Division of the U.S. Department of Labor announced that the company should follow the overtime payment laws just as they advise their clients to do.

The DOL investigation revealed that the company failed to pay overtime owed to employee. The company was under the mistaken impression that just because a worker is salaried, no overtime was due. Even increasing a worker's salary does not necessarily preclude the payment of overtime.

For its violations of the Fair Labor Standards Act, TriNet will pay nearly $1 million to numerous employees in unpaid overtime and damages. This was not the first time that the company was found to be in violation of the FLSA, however. Back in 2012, DOL investigators found similar violations. That time, the company had to make payments of back wages and damages to employees in the total approximate amount of $326,000. 

California employees who are paid a salary need to be aware that they might still be eligible for overtime. Every company, regardless of its function, must comply with current state and federal employment laws, including wage and hour laws. Some companies -- like TriNet -- either inadvertently or purposely fail to pay overtime because an employee is classified as salaried. Those who believe that they are still owed overtime might have the right to file a complaint.

Source:, "What? HR consulting firm to pay $1M for violating OT regs", Tim Gould, April 22, 2016

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