Robert Half International will pay $11.4 million to settle three wage and hours suits brought by account executives and staffing managers in California.
In a filing with the Secruities and Exchange Commission, the company said the impact to its second quarter profit will be about $8.4 million or 6 cents a share. Before the settlement, analysts are expecting the company to earn 36 cents a share.
In one of the cases, account executives and managers claimed they were misclassified as exempt and should have been paid overtime going back several years. The other two cases included claims they were denied meal periods, breaks and didn’t get accurate wage statements.
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One of the cases dates back to 2004. The other two are more recent.
The staffing company said it believed it had a strong defense case, but decided to settle all the claims in the interest of saving money.