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Staffing firms must pay $394,438 to Arizona warehouse workers

August 14, 2018

More than 120 workers in Arizona will receive $394,438 in back wages and liquidated damages from three staffing firms in a lawsuit that claimed the firms took part in a scheme not to pay overtime, the US Department of Labor announced Monday. The workers had worked at an Albertson’s warehouse in Tolleson, Ariz., according to court records.

Staffing firms in the lawsuit include Employer Solutions Group LLC and Arizona staffing providers TBG Logistics LLC and Countrywide Payroll & HR Solutions Inc., according to the department.

Last month, a federal judge entered a judgement against Employer Solutions in the amount of $157,036, rejecting the company’s argument that, as a large employer, it could not be expected to monitor every paycheck, according to the Department of Labor. TBG and Countrywide previously settled with the Secretary of Labor, agreeing to pay $237,402 — for the total of $394,438.

“This litigation and the investigation demonstrate the US Department of Labor’s commitment to ensuring that workers receive the wages they have legally earned, and that employers compete on a fair and level playing field,” said Wage and Hour Division District Director Eric Murray, in Phoenix.

Employer Solutions Group on Aug. 9 filed an appeal of the ruling with the 9th Circuit Court of Appeals.