Overtime Justice Served: Sedgwick Reaches $5.6 Million Settlement in FLSA Lawsuit
In a major victory for employees, Sedgwick Claims Management Services settled a class-action lawsuit alleging unpaid overtime and FLSA violations for $5.6 million in 2023. This case highlights the struggle against overtime wage theft and serves as a reminder of employee rights under the FLSA.
Detailed Breakdown:
- Lawsuit: Filed in 2021 against Sedgwick in the U.S. District Court for the Middle District of Florida.
- Allegations:
- Unpaid overtime for salaried employees in violation of the FLSA.
- Denial of meal and rest breaks.
- Settlement: Reached in 2023 after mediation, awarding $5.6 million to eligible employees.
- Impact:
- Major victory for plaintiffs, providing compensation for lost wages.
- Sets a precedent for FLSA compliance in the third-party claims administrator industry.
- Reminder for employees to be aware of their rights and seek legal counsel if needed.
- Wider context: Sedgwick faces additional lawsuits, including one alleging racial and gender discrimination.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| 2021 | Sedgwick Overtime FLSA Class Action | N/A | U.S. District Court, Middle District of Florida | Alleged unpaid overtime and denial of breaks for salaried employees. |
| 2023 | Sedgwick Overtime FLSA Settlement | N/A | U.S. District Court, Middle District of Florida | $5.6 million settlement reached after mediation, compensating plaintiffs for lost wages. |
