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August 03, 2004
University of Phoenix to Pay up to $3.5M to Settle OT Suit

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The University of Phoenix has agreed to pay up to $3.5 million to settle a complaint accusing the university of violating the overtime provisions of the Fair Labor Standards Act, according to the U.S. Department of Labor.

The settlement covers 1700 employees who worked as admissions counselors at 90 of the university's campuses and learning centers across the country.

The agreement provides back wages for unpaid overtime to employees of the university's "on ground" admission counselors and is a companion to one filed by the Labor Department in June providing nearly $2 million in back wages for some 2,600 employees working as admissions counselors in the university's on-line admissions department.

Final back-wage calculations are being cooperatively developed by the university and the Department of Labor, and will be provided to the court upon completion.

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