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TAC Worldwide said today back overtime wages of approximately $1.9 million will be paid to 970 workers that were inadvertently misclassified as "computer professionals," a category exempt from overtime. The Dedham MA-based technical staffing firm said the payment came as part of a consent agreement between it and the U.S. Department of Labor.
The workers had been paid straight time for all hours worked, including when they worked more than 40 hours per week. However an audit at a regional office of TAC by the Department of Labor found that the workers were misclassified as computer professionals and were required to be paid overtime when working more than 40 hours a week.
The $1.9 million represents back overtime wages.
"After working closely with the Department of Labor on this complex issue, TAC is satisfied that it has complied with federal guidelines and has taken the necessary steps to address and correct these misclassifications, and to ensure TAC's ongoing compliance," said Robert Badavas, CEO of TAC Worldwide. "The affected employees are being reclassified and paid the appropriate back overtime wages."
These workers represent less than one-third of 1% of the total TAC payroll for the period covered by the consent agreement, which dates back to February 2006, according to the company.