By Drew Cullen in San Francisco for The Register.
This story has been reproduced with permission.
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.
© The Register
2006
