For everyone who likes irony: About 700 employees of the Equal Employment Opportunity Commission are claiming the agency has violated federal employment law.

The issue involves 600 investigators and 100 mediators whom the agency has classified as exempt. However, they claim they do non-exempt work - and put in lots of overtime. A third-party arbitrator ruled in agreement with the employees.

How did this happen? According to a negotiator representing the employees, the agency’s workforce is shrinking due to a lack of funds and a hiring freeze. Therefore, employees are working longer and harder, and the agency is trying to save money through misclassification.

“For a government agency charged with ensuring that other employers follow the law, this decision should be an embarrassment,” the negotiator said. Strong words, to say the least.

What’s the lesson for employers? If the EEOC can’t get away with it, no one can.

Tags: EEOC, lawsuits, overtime pay