New Bedford Factory Agrees to Settle Federal Wage and Overtime Lawsuit for $850,000

Gordon Law Group, LLP partnered with legal aid groups to secure a major settlement against Michael Bianco, Inc.. The agreement returns unpaid wages and overtime compensation to 764 former workers. The settlement totals $850,000 and covers 764 impacted workers from a New Bedford defense-gear factory. Crucially, 764 former applicants will share back pay, medical costs, and benefits they lost during company wage violations.

Illegal Pay Structure Exposed After 2007 Raid

In 2007, federal investigators launched a controversial immigration raid at the factory. The event shocked local communities and pushed labor lawyers to dig deeper. Next, worker interviews revealed widespread pay violations. The investigation uncovered pattern-based wage docking, false overtime labels, and direct company control over workers. Many staff members reported that managers disciplined them, scored performance, set shift systems, and controlled payroll. Because of this, workers held a strong joint-control claim. Crucially, the company formed a shadow corporation, called Front Line Defense, Inc., to mask overtime pay abuse.

Sham Payroll Tactic Blocked Overtime Wages

Managers scheduled many workers for long shifts. First, they logged full-time hours under Michael Bianco. Afterwards, they logged night overtime under Front Line Defense. Still, workers operated the same machines during both shifts. They completed the same factory tasks. Unfortunately, the fake payroll design blocked time-and-a-half overtime pay. One worker, Elsy Hernandez, confirmed the double-paycheck design. At times, she worked 14 hours a day. Yet, she never received true overtime payment. Later interviews showed similar patterns among hundreds of workers.

Illegal Meal & Rest Time Cuts Added to Claims

Company systems deducted pay for tiny schedule delays. For example, the firm cut 15–30 minutes from pay when workers clocked in 1 minute late. Even when employees arrived on time, long time-clock lines caused small delays. Still, the company blamed workers. Then, it docked pay regardless. Many drivers also reported that they paid job costs the firm should have covered. These included machine use penalties, fuel, insurance, and shift gear.

Department of Labor Supervises $613,000 Payout

Now, the U.S. Department of Labor will supervise $613,000 of the restitution payout. Additionally, the remaining funds will support community worker rights groups and partial legal cost recovery. Importantly, six named plaintiffs will receive separate awards recognizing their courage. The payout per worker will vary. Still, each one gets compensation for wage docking and missed overtime. This applies whether or not they worked double shifts. All workers employed between 2004 and March 2007 can claim back restitution. Moreover, the policy applies regardless of immigration status, location, or residency.

Who This Ruling Protects

The settlement confirms stronger rights for:

• Factory line workers
• Warehouse staff
• Defense-gear operators
• Double-shift staff
• Hourly workers under company control

Why This Matters for Worker Income Stability

This settlement matters because pay stability protects families. It supports rent, meals, medicine, school fees, and medical coverage. Without triple damages pressure, companies often delay fair settlements. However, this case signals that shadow payroll tricks can no longer dodge wage laws. Courts also confirm that core business tasks count as inside company work, not side services. Mislabeling that work as contractor work also sends a red flag.