Feeds

IBM coughs up $65m over techie overtime suit

Not admitting liability

Eight steps to building an HP BladeSystem

IBM is paying up to $65m in backdated overtime pay to 32,000 US-based techies,to settle a federal class action suit.

In January three current and former employees of IBM filed suit in US District Court in San Franciso, alleging that "IBM illegally treats its employees who install, maintain or support computer software or equipment as "exempt" under federal and state labor laws so it does not have to pay them overtime".

The settlement means that IBM's foot-soldiers, from now, will receive overtime pay for working more than 40 hours a week and on weekends.

In its capitulation statement, IBM bristles somewhat.

Litigation of this case would have been lengthy, burdensome and expensive, and IBM chose to resolve it, without admitting any wrongdoing or liability, for a total of $65 million. IBM had established a provision for the probable settlement of this case in the third quarter of this year.

IBM states that during its 90-year history as a major employer in the US, it has a long-standing, proven track record in accurately and appropriately paying many hundreds of thousands of employees. IBM continues to believe that its payment practices are fair and comply with all applicable laws and regulations.

But the notion that people who install, maintain or support computer software or equipment, should do so for free is frankly bizarre. IBM was on a hiding to nothing with this case and knew it. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
Price cuts, new features coming for Office 365 small biz customers
New plans for companies with up to 300 staff to launch in fall
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.