Negotiations Reportedly Break Down in AON Corp. Overtime Case

February 11, 2003

After months of negotiations, the parties have reportedly reached an impasse regarding potential settlement of a federal collective action lawsuit filed against AON Insurance Corporation (AOC) on behalf of a nationwide class of employees for unpaid overtime wages. AON reportedly failed to meet a Friday deadline for the continuation of negotiations, thereby provoking renewed litigation against the company.

The lawsuit is pending in the United States District Court for the Southern District of Texas – Houston Division.

In the lawsuit, current and former employees have alleged that AON account executives, assistant account executives, and account managers are not exempt and that the company’s salaried employees are not exempt because AON reportedly engaged in systematic and unlawful docking of salaries. According to the lawsuit, the account executives are seeking lost wages, liquidated damages, front pay, compensatory damages, punitive damages, and pre-judgment interest. Although AON disputes the amount that it potentially owes, some damage estimates for the case exceed $30,000,000.

“We believe that AON account executives and other employees are owed millions in unpaid overtime,” said J. Derek Braziel of Edwards & George, LLP, who represents the AON account executives. “The case is simple. AON did not pay its employees for the work they performed. This case should have AON’s full attention because of the Court’s rulings maintaining the company’s nationwide human resources entity in the litigation. However, as evidenced by the recent breakdown in negotiations, AON appears to be asleep at the wheel.”

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