News Column

While MacArthur Was CEO, More Than 120 Employees Sued York for Failing to Pay Overtime

August 15, 2014



WASHINGTON, Aug. 15 -- The campaign of Aimee Belgard, a Democrat running for election in New Jersey's3rd Congressional District, issued the following campaign news:

While Tom MacArthur was President and CEO of York Risk Services, over 120 current and former employees sued the company for failure to pay overtime to its workers in an ongoing class action lawsuit. The Plaintiffs alleged over $5.5 million in unpaid wages based on wage statements and salary information supplied by York and the average of 8.61 hours of overtime per week. Meanwhile, MacArthur was raking in millions and no doubt cashing in huge bonuses.

Three years later, as a member of the Randolph Town Council, he voted to take away sick leave for injured workers in his community. And now that he's running for Congress, he refuses to support the Paycheck Fairness Act or other measures that would allow women to gain equal footing in the workplace.

"Tom MacArthur raked in millions while, on his watch, his company was sued for refusing to pay overtime to its employees. That's unforgivable and is yet another example of how 'profit-at-any-cost' seems to be his top priority." said Hannah Ledford, Aimee Belgard's campaign manager. "This isn't an isolated incident. As a member of Randolph Town Council, he voted to take away sick leave for members of his community, and now he refuses to support legislation that would ensure equality in the workplace for women. Meanwhile, he advocates for tax breaks for multi-millionaires like himself and refuses to reject lavish taxpayer funded perks. The hardworking men and women of South Jersey and the Shore deserve a representative who will stand up for them in Congress, not use them to line their own pockets and those of their special interest friends."

Background:

More than 120 Employees Have Sued York in an Ongoing Class Action Lawsuit for Failing to Pay Overtime: In 2008, York Was named as defendant in overtime wage case filed by employees. In 2008, York was sued for requiring employees to work overtime without payment of overtime. MacArthur was the CEO of York at the time. The complaint stated, "Plaintiffs RICHARD TERRY JOHNSON, SANDRA JOHNSON, JOCELYN POSITOS, DEO RAJ, CHERYL NEEDHAM, on behalf of themselves and all other similarly situated and alleges against Defendant York Claims Services, Inc., and alleges as follows." [Complaint, Johnson et al v. York Claims Service, 3/31/08] * Plaintiffs Were York Employees who York Failed to Pay for Working Overtime: "Plaintiffs seek to represent a class of all employees of Defendants, who at all relevant times were employed as claims examiners by Defendant within the State of California who were subject to Defendants' illegal practices of requiring Plaintiffs and all other similarly situated to work overtime without payment of overtime..." [Complaint, Johnson et al v. York Claims Service, 3/31/08]

* Case Combined as a Class Action: In October 2009, an amended class action complaint was filed combining two similar cases against York. The amended complaint reads: "Ms. Williams and Ms. Green ("Plaintiffs") sue on behalf of themselves and other similarly situated "claims examiners" who worked for the Defendant. This action claims that Defendant violated the wage and hour provisions of California wage and hour laws by depriving Plaintiffs, as well as others imilarly situated to the named Plaintiffs, of their lawful overtime wages." [Judicial Council Coordination Proceeding no. 4506, Amended Complaint filed 10/22/2009]

* Class Consisted of 122 "Current and Former Employees: "All together, these exclusions left a total of 122 persons who were members." [Brief, Johnson et al v. York Claims Service and Williams et al v. York Claims Service, 5/06/14]

* Plaintiffs Alleged Over $5 Million in Unpaid Wages: "Based on the wage statements and salary information supplied by York and the average 8.61 overtime hours per week, Dr. Steward calculated total unpaid overtime wages as $5,506,803. [Brief, Johnson et al v. York Claims Service and Williams et al v. York Claims Service, 5/06/14]

* Case Went to Trial: In May 2014, the class action suit went to trial. As of August 2014, the case was pending a decision by the judge assigned to the case. [Sacramento County Superior Court Website, accessed 8/15/14.]

As a Town Councilman, MacArthur Voted to Take Away Sick Leave for Injured Workers in his Community: During a 2011 Randolph Town Council Meeting, A Resolution to Prevent Injured Employee From Taking Sick Leave Was Presented. "a.6-11-Repeal of Sick Leave Injury. Manager Lovell noted that this proposed resolution deals with repealing the use of sick leave when there is an injury."

* MacArthur Voted in Favor of the Legislation: "Ayes...Councilman MacArthur." [Town of Randolph Meeting Minutes, 1/27/11]

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