Wage and Hour Division (WHD)

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SAN FRANCISCO -- The U.S. Department of Labor has filed a complaint against the University of Phoenix in U.S. District Court in Phoenix. The suit seeks payment of overtime back wages for approximately 2,600 current and former employees. In addition, the parties filed a settlement agreement that provides a means to resolve the complaint.

"Both today's action and our new Overtime Security rules reflect our commitment to protecting overtime rights," said Secretary of Labor Elaine L. Chao. "These employees weren't receiving their rightful pay, and we are taking action to restore an estimated $2 million to these workers. Overtime rights will be further strengthened by our new Overtime Security rules, which will increase pay protections for millions of workers by updating and clarifying the old regulations."

An investigation conducted by the Labor Department's Wage and Hour Division found that employees in the online admissions department, who sometimes worked as many as 60 hours per week, 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.

In this case, the affected workers were responsible for contacting prospective students, by telephone and selling them the University's online degree programs. Company records are being used as the basis to calculate the amount of back wages owed.

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.

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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.