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New Jersey staffing firm paying $910,000 over allegations it didn’t pay overtime

May 08, 2023

A New Jersey staffing firm is paying $910,000 in back wages and liquidated damages to 289 employees after it failed to pay overtime and keep accurate records of hours worked, the US Department of Labor reported today.

The department said it obtained a consent judgment against staffing firm Advantix Logistics Corp., based in Lyndhurst, New Jersey, and owner Michael Mortorano.

“This consent judgment makes clear to all staffing agency employers that, like Advantix Logistics Corp., they will be held accountable if they fail to pay employees their legally earned wages,” said Solicitor of Labor Jeffrey Rogoff in New York.

Workers at Advantix were paid a combination of hourly and piece rates, but the rates did not include an overtime premium when more than 40 hours a week were worked, according to the department. The workers — who loaded and unloaded freight from containers and pallets — worked upwards of 70 hour per week at warehouses.

The consent judgment requires the company and owner to pay $455,000 in back wages and an equal amount in liquidated damages for a total of $910,000.

Separately, the department said Advantix Logistics faced an earlier consent judgment in November 2022 that required the firm to pay $65,000 in damages to a former employee. In that case, an investigation found the staffing firm fired the worker after the worker complained about not being paid for all hours worked.