Career Ed Corp In Class Action Lawsuit/Not Paying Overtime Ripoff Hoffman Estates Illinois

Career Ed seeks gag order in overtime lawsuit

(Crain's) Career Education Corp. is asking a federal judge to restrict communications with the press and potential plaintiffs in a lawsuit seeking unpaid overtime for employees at one of its subsidiaries.

The company, which operates forprofit post-secondary education facilities, filed a motion for a protective order Friday in U.S. District Court for the Northern District of Illinois that would place limitations on how the plaintiffs' lawyers would pursue contacting individuals in their class action-type case against Career Education Corp.

Career Education Corp. officials declined to comment further on the motion.

Robin Potter, who represents the employees in the lawsuit, called the request extreme and outrageous and a personal attack.

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I'm just a lawyer for the workers in a simple overtime case, said Ms. Potter, who intends to file a court response this week. Our focus is on the issues and the employees and their right to be in a lawsuit.

U.S. Judge William Hart is scheduled to hear the request at 11 a.m. on Wednesday.

The Hoffman Estates-based company filed the motion along with American InterContinental University Online, a wholly-owned subsidiary, and Steve Fireng, president of Career Education Corp.'s online division. All three parties are defendants in the class action-type lawsuit filed in August 2005 by a group of American InterContinental University Online employees who are seeking lost wages. The employees, who solicited students to sign up for classes, claim they were required to under-report overtime and forced to work off the clock.

Career Education Corp. is seeking the protective order in response recent efforts by Ms. Potter and her office in notifying employees of the lawsuit, court documents said. In Friday's filing, the company accuses Ms. Potter's firm of engaging in deceptive telephone conversations with potential class members and threatening to send class notification to individuals who are not entitled to join this suit. In addition, Career Education Corp. claims Ms. Potter is using the press, including Crain's Chicago Business and The Daily Herald, which have recently written about the lawsuit, to influence potential class members.

This is the second time American InterContinental University Online employees have sought to reclaim lost wages due to overtime. The first, which attempted to gain class action status at the Circuit Court level but failed, was filed in October 2003. A trial date has been set for July 10.

The overtime lawsuit is one of many issues weighing on Career Education. The company has been subject to accreditation inquiry, federal investigations, a shareholder lawsuit and a proxy battle.

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