In the case of Scalia v. G-Force Logistics, Inc., Eugene Scalia, Secretary of Labor, United States Department of Labor, filed a complaint against G-Force Logistics, Inc. and Joe Giacometto, individually and jointly. The complaint alleged violations of the Fair Labor Standards Act (FLSA), stating that G-Force failed to pay overtime wages to employees who worked more than 40 hours in a workweek and failed to maintain accurate records of employee wages. A default judgment was entered against G-Force after it failed to respond to the complaint.
The FLSA applied to enterprises engaged in interstate commerce, and G-Force met the criteria as it transports packages across state lines and reports a substantial annual gross dollar volume. Joe Giacometto, the sole owner of G-Force, was considered an “employer” under the FLSA, which made him jointly and severally liable for unpaid wages along with the corporation.
G-Force paid a flat day rate without accounting for overtime hours worked and excluded the monthly “safety/service bonus” from the regular rate. As a result, ten employees were owed unpaid overtime wages totaling $37,008.12. G-Force was also liable for liquidated damages, equal to the amount of unpaid wages.
The court granted the motion for default judgment, determining that the employees were entitled to a monetary judgment for the unpaid overtime wages and liquidated damages. Injunctive relief was also granted to ensure future compliance with the FLSA. G-Force was ordered to make payment to the U.S. Department of Labor within 30 days. The judgment amount was distributed to the affected employees, with appropriate deductions for taxes.
Key lessons from this case:
- The FLSA covers businesses that are involved in interstate commerce. This means those businesses are considered employers under the FLSA and can be held liable for unpaid overtime claims.
- Failing to respond to an overtime wages claim can result in default judgment favoring the employee.
- Individuals with operational control over a covered enterprise can be held personally liable for unpaid overtime wages under the FLSA.
If you want to know more about overtime regulations, read our guide on South Dakota Overtime Laws.
