Wage and Hour Division (WHD)

Printer-Friendly Version

Press Releases

SAN FRANCISCO -- The U.S. Department of Labor has filed a settlement agreement in U.S. District Court in Phoenix, Arizona, resolving a complaint against the University of Phoenix. The suit, the second involving the University of Phoenix to be settled in the past month, will award up to $3.5 million in overtime back wages to 1700 employees who worked as admissions counselors at 90 of the university's campuses and learning centers across the country.

"The Department of Labor was able to recover $3.5 million in overtime back wages for these workers," said Secretary of Labor Elaine L. Chao. "When the Labor Department's new Overtime Security Rules go into effect, they will provide clearer overtime protections for workers such as these, and reduce the need for lengthy investigations and litigation in such cases."

Last year, the Wage and Hour Division recovered more than $212 million in back wages - a 21 percent increase over the previous year.

The July 23 agreement provides back wages for unpaid overtime to employees of the university's "on ground" admission counselors and is a companion to one filed by the Labor Department June 17 providing nearly $2 million in back wages for some 2,600 employees working as admissions counselors in the university's on-line admissions department. Final back wage calculations are being cooperatively developed by the university and the Department of Labor, and will be provided to the court upon completion.

The Labor Department's Wage and Hour Division found that "on ground" admission counselors, like the on-line admissions counselors, did not receive overtime pay. The Fair Labor Standards Act requires that eligible employees be paid one-and-one-half times their regular rate of pay for hours worked over 40 per week.

For more information about the Fair Labor Standards Act, call the Wage and Hour office in Phoenix at 602-640-2990, or the Department of Labor's toll-free help line at 1-866-4US WAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

###

U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.