FDM Group Inc. agreed to a settlement of approximately $4.1 million to contingent workers in a lawsuit over pay that was filed in the US District Court for the Southern District of New York, according to court filings. A motion preliminary approval of a class-settlement was filed earlier this month.
“FDM trainees were unlawfully denied the minimum wage for all hours worked and FDM consultants were unlawfully denied minimum wage, gap time and overtime compensation, subjected to unlawful deductions and/or ‘kickbacks’ of their earned wages,” according to the complaint in the lawsuit.
The company provides training to workers and then places them at client companies.
Among allegations in court documents, plaintiffs said the company required workers to take and eight to 16 weeks training program before being placed at clients. Trainees were required, after two weeks, to complete the training, seek placement at an FDM client and continue working for FDM for a period of two years. They would face a penalty of $30,000 if they left in the third week of training or if they left FDM’s employment nine months into their two-year contract as an FDM consultant.
The complaint claimed the training did not benefit the workers but only FDM because it allowed the company to get more money for its placements.
FDM did not pay trainees wages prior to September 2015, according to the complaint. It also argued trainees were employees during the training period.
Other allegations in court documents were that workers did not receive overtime pay. FDM Group is a global professional services company headquartered in London.
The lawsuit is Grace Park v. FDM Group Inc., case no. 16-CV-1520.