Big interest and back pay award in FLSA overtime case

by on March 30, 2009 · 0 Comment POSTED IN: HR Info Center

The true cost of losing an FLSA overtime pay dispute

Here’s more evidence that it pays to keep your house in order when it comes to overtime pay. Even when there’s no fine for a violation, employers wind up paying much more than they would have paid in FLSA overtime wages, as this case illustrates.

Bakers rise up

After several low-wage bakery personnel complained to the DOL’s Wage and Hour Division, investigators paid the employer a visit.

They looked at a two-year pay period and determined the employer owed 147 employees overtime pay.

The employer cooperated fully with the investigation. It claimed ignorance of the law and promised to participate in future audits and keep better payroll records. The court imposed no additional fines on the employer.

But here’s what it had to pay:

  • $100,000 in back overtime wages to 147 employees.
  • An additional $21,749 in interest.
  • An undisclosed amount for court costs and legal fees.

The employer elected an installment plan, with an initial payment of $5,932 and 24 monthly installments of $4,825 to the DOL for distribution to the current and former employees due back wages.

And if the company misses one payment, the entire balance will be due to the DOL immediately.

Cite: DOL v. El Mirasol Bakery.

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