Lawsuit Claims Liberty Tax Service Tax Preparers Work ‘Substantial’ Overtime Without Proper Pay

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Kapdas Incorporated, Kapdas Holdings, LLC and Kapdas Tax Services—all of which do business as Liberty Tax Service—find themselves as defendants in a proposed collective action in which a former tax preparer alleges hourly employees were forced to work substantial amounts of overtime without proper pay. The lawsuit alleges the defendants’ tax preparers regularly work in excess of 40 hours per week and are only paid wages at their straight-time rate for up to 58 hours of work per week. The plaintiff and the proposed collective received no compensation at all for hours worked past 58 each workweek, the case continues.

The suit further claims the defendants deducted one hour from each day’s pay for lunch even though tax preparers were often not able to take full one-hour lunch breaks. The defendants allegedly also took 30 minutes from employees pay each day for other “breaks” regardless of whether any breaks were actually taken.