Pennsylvania battery maker ordered to pay $22 million in back wages after DOL rules it denied thousands of workers overtime
- A Pennsylvania battery maker was ordered to pay 7,500 workers $22 million in unpaid overtime.
- The DOL said East Penn Manufacturing didn't pay staff for time needed to change clothes and shower.
A Pennsylvania battery maker was ordered to pay $22 million in back wages to 7,500 workers after the Department of Labor (DOL) ruled they were denied overtime.
The DOL said East Penn Manufacturing Company Inc. didn't pay employees for their time spent preparing to work in hazardous conditions.
The department said the verdict, reached by a jury, was the largest recorded amount it had obtained under the Fair Labor Standards Act.
East Penn Manufacturing Company Inc is one of the world's largest battery manufacturers.
During its investigation, the DOL found that East Penn employees were only being paid for their contracted 8-hour shifts. But this excluded the extra time that employees were required to put on and remove protective equipment and shower, mainly to avoid lead exposure.
For many US workers seeking to boost their income, overtime is a pressing issue. A 2022 survey from Qualtrics showed that 57% of respondents wanted the opportunity to work overtime or extra shifts to bring home more money.
Referring to the East Penn ruling, principal deputy wage and hour administrator, Jessica Looman, said in a statement: "This verdict of more than $22 million is a long-overdue victory for more than 7,500 workers at East Penn Manufacturing."
She added: "Federal law requires employers to pay workers for the hours they work, including time these workers needed to protect themselves from dangerous workplace hazards."
The DOL said it would also be seeking to "award an equal $22 million amount in liquidated damages for the affected workers."
In a statement, the DOL's solicitor of labor, Seema Nanda, said the time employees spent changing their clothes and showering was "indispensable" to their work and deserved remuneration.
"The jury's verdict will go a long way towards making the employees whole and serves as a stark reminder for employers like East Penn to think twice before instituting policies designed to skirt the law," Nanda said.
East Penn Manufacturing didn't immediately respond to Insider's request for comment.