Citigroup will pay a total of $325,000 to a group of 18 information technology (“IT”) workers to settle a lawsuit alleging the company cheated them out of overtime compensation. According to the IT workers, they regularly worked approximately 40 to 50 hours per week, but were paid a straight hourly rate for only the first 40 hours, without any compensation for additional time worked.
The IT workers claimed that Citigroup misclassified them as contractors exempt from overtime under a “Professional” pay plan. The workers further stated that Citigroup failed to record all of their time actually worked. The 18 IT workers in the case are set to receive settlement awards ranging from $2,879 to $17,817, based on the respective number of hours worked. The workers were all hired by a staffing agency, but alleged that Citigroup was their joint employer, as Citigroup controlled both their work tasks and determined their payment plan.