Coral Gables-based communications construction firm MasTec will pay up to $12.6 million to settle wage disputes raised in a 2005 FLSA collective action filed in U.S. District Court in Tampa, Florida. The settlement class includes current and former employees from California, Florida, Georgia, Maryland, New Jersey, New Mexico, North Carolina, South Carolina, Texas and Virginia, who worked for the company or its affiliates from 2001 to 2007. One of the affiliates was MasTec Advanced Technologies, a firm handling DirecTV installation services. The complaint alleged that the company failed to pay overtime wages, including wages for off-the-clock mandatory meetings. Court records reflect that the settlement amount was calculated by assuming 1.61 hours of unpaid overtime for each day of work from October 10, 2002 to May 26, 2006. The settlement requires court approval, which has not yet been ordered. The $12.6 million maximum payout is based upon a 100% FLSA opt-in rate. In all likelihood, the total payout will be less than $6 million, including $3.8 million to the plaintiffs' attorneys, $750,000 for the named plaintiffs, and perhaps as much as $2 million for class members who opt in, based upon historically average opt-in rates.
We are not aware of any California class actions against MasTec for wage violations under state law, but we would be surprised if there isn't one out there.