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ESA News Release: [04/28/2008]
Contact Name: John M. Chavez
Phone Number: (617) 565-2075
Release Number: 08-0583-BOS

U.S. Labor Department secures more than $688,000 in overtime back wages for 238 employees of Quest Diagnostics Inc. nationwide

BOSTON — Following an investigation by the U.S. Department of Labor, New Jersey-based Quest Diagnostics Inc. has agreed to pay 238 employees across the country a total of $688,772 in overtime back wages due under the federal Fair Labor Standards Act (FLSA).

The investigation by the department's Wage and Hour Division, involving the company's Cambridge, Mass., location, found that employees working in the positions of client systems analyst and senior client systems analyst were misclassified as being exempt from the FLSA's overtime requirements. The investigation also revealed that this same misclassification existed at all of the company's facilities nationwide.

Quest Diagnostics is a medical diagnostic testing company. After being informed of the investigation's findings, company management agreed to pay the affected employees back wages and to full future compliance with the requirements of the FLSA.

"The Labor Department is always pleased when we present our findings to an employer and are met with cooperation rather than resistance," said George Rioux, director of the Wage and Hour Division's district office in Boston. "Employers should know that the Wage and Hour Division is committed to ensuring that workers are paid properly for all the hours they work."

The FLSA requires that employees be paid at least the federal minimum wage, and time and one-half their regular rates of pay for hours worked beyond 40 per week. The law also requires that employers maintain accurate records of employees' wages, hours and conditions of employment. The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional and outside sales employees. To qualify for exemption, employees generally must meet certain job duty and salary tests.

The Wage and Hour Division concluded 30,467 compliance actions and recovered a record $220 million in back wages for more than 341,000 employees in fiscal year 2007. Back-wage collections in fiscal year 2007 represent a 67 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 58 percent since fiscal year 2001.

Information about the FLSA's requirements may be obtained by calling the Department of Labor's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov. The Wage and Hour Division's Boston District Office can be reached at 617-624-6700. Information about the current exemption can be found on the Internet at www.dol.gov/fairpay.