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RMJM faces lawsuit over unpaid US wages


Former senior HR manager Dana Byrne has launched a class action lawsuit against RMJM, its separate divisions and its directors

According to the complaint lodged with the district court in New York, ‘hundreds’ of RMJM employees have suffered ‘substantial damage’ due to the AJ100 big hitter’s ‘numerous unlawful employment practices’.

The class action, lodged by Byrne ‘on behalf of all similarly situated employees who elect to opt in’, claims the practice had intentionally withheld and continued to withhold earned wages from its employees.

The document, filed last week, also alleges that due to RMJM’s failure to pay its premiums, the workforce lost its life insurance cover. Byrne contends there was ‘fraudulent concealment’ of the cancellation of the group term life insurance policy.

The legal papers allege damages are owed for ‘unlawful failure to pay minimum wage… unlawful wage deductions… failure to furnish accurate wage statements and failure to make wage payments with the requisite frequency.’

The litigation comes just three months after RMJM was served with eviction papers and left its former New York office at 275 Seventh Avenue (see AJ 29.08.12).

A few weeks ago the global giant appointed KPMG as receivers of RMJM Ltd, RMJM London Ltd and RMJM Scotland Ltd with ‘contracts in these companies acquired by the new RMJM European Division’. RMJM refused to comment.


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Readers' comments (2)

  • Looks like RMJM is stuck between a rock and a hard place yet again.

    It's a shame to see them going down this road. Hopefully they'll be able to finagle their way out of this mess soon.

    Unsuitable or offensive? Report this comment

  • Its not a shame to see them go down this road, its justice for their actions. What they need to finagle themselves into is talent or integrity.

    The "war room" they might have been using to plan how not to pay people and the "bunker" they might have been hiding in may soon be exchanged for a jail cell.

    This is not due to a brutal global economy.

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