The lawsuit, which involves former and current security guards employed by Securitas, alleged the Securitas violated state and federal statutes by not providing employees with vacation pay. Guards were given sums of money, however, in the form of lump-sum payments once per year as compensation for vacation time.
The complaint asserts that the payment provided by Securitas was, in effect, a nondiscretionary retention bonus based on the number of hours worked, yet not dependent on vacation time taken. Not only was the lump sum payment denied to guards having left the employ of Securitas prior to their employment anniversary, it was also not included in overtime calculations, as required under the FLSA.
As part of the settlement Securitas agreed to pay $2.5 million