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TriNet to pay $1 million in back overtime pay, damages

April 19, 2016

TriNet Group Inc. (NYSE: TNET) will pay $1 million in back overtime wages and damages combined to 267 employees of its subsidiary TriNet Human Resources Inc., the US Department of Labor announced Monday. The Department of Labor registered the case against TriNet Human Resources, the entity that is on the employees’ paychecks.

“TriNet is fully committed to compliance with all of its obligations as an employer,” TriNet said in a statement. 

The PEO said it voluntarily cooperated with the Department of Labor in a review of the overtime exempt classification of a job position at TriNet.

“The DOL ultimately disagreed with our assessment that the duties in this newly created position included a sufficient exercise of independent judgment and discretion for the employees to be exempt,” TriNet said. “The salaries of the employees at issue were increased commensurate with the employees’ change in responsibilities, not for the purpose of contending they were exempt. TriNet voluntarily agreed with the DOL to compensate the employees for their previous work without any admission of liability. “

TriNet expects the matter to be fully resolved this quarter.

The PEO will pay back pay wages and damages to workers in amounts ranging from a few hundred dollars to more than $13,000 for one worker. The division also assessed $58,000 in civil penalties for the violations.

In 2012, the company paid $326,000 in back wages and damages after the division found similar violations, according to the Department of Labor. “TriNet falsely believed that raising an employee’s salary exempted them from receiving overtime pay,” said Susana Blanco, the division’s wage and hour director in San Francisco. “Hopefully, the company will now pay better attention to the rules going forward and pay its employees the wages they earned.”