Wage and Hour law enforcement is kicking into high gear

by on April 1, 2009 · 0 Comment POSTED IN: HR Info Center

The cost of not following FLSA regulations increases every day

Unpaid overtime is a major violation of wage and hour law

A firm that paid employees on a piece-work basis was found to be in violation of federal wage and hour law because the piece rate didn’t meet the prevailing wage.

When the DOL’s Wage and Hour Division investigated further, it learned that the employer hadn’t paid overtime to its employees who’d worked more than 40 hours a week. Also, it had falsified some of its payroll records.

In this case, most of the employees were immigrant workers. Perhaps the employer thought they couldn’t audit payroll records or compare their piece rate to the prevailing wage. But even if the workers weren’t that sophisticated, the DOL was.

After the investigation, the employer was ordered to pay $390,406 in back wages and $44,593 in overtime. As part of the settlement, the company was barred from federally-funded construction projects for three years. That’s a big price to pay for violating wage and hour law

This case should remind all employers that the FLSA regulations protect all workers – from low-wage immigrants on construction sites as well as high-paid nationals in corporate suites.

Cite: DOL v. Sinco Construction Corp.

Company nailed twice for FLSA wage and hour law violations

When it comes to defining compensable hours do you ever find yourself in a “gray zone” of wage and hour law where the decision could go either way? Here’s a case where a company made too many “gray-zone decisions” against employees and got slammed for it.

An FLSA compliance investigation of a concrete company found that truck drivers weren’t getting paid for drive time when they transported equipment from the company’s yard to the work site – or from site to site.

Other workers weren’t getting paid for the time they spent loading and unloading trucks before they reached the job site. In a settlement, the company agreed to pay nearly $95,000 in back wages to 19 employees. It was also fined $8,075 for repeat violations of the FLSA regulations: In 1999 the company was found to have cheated 52 workers out of $47,000 in overtime.

Cite: DOL v. Rossi Concrete, Inc

Firm takes a $329K hit for FLSA wage and hour law violations

A nursing staffing firm paid 73 employees a fixed daily rate that didn’t account for overtime they worked, DOL said. Now the company has to pay $329,000 in back overtime wages.

Violations of FLSA regulations took place over a two-year period, DOL said.

Cite: DOL v. American Private Duty.

The pro was cheap. Violating FLSA regulations cost alot

A Massachusetts racquet club owes $50,000 in back wages and fines to tennis instructors and others who weren’t properly paid for overtime.

The 31 affected employees also included maintenance, cafeteria, and customer service workers. A number of the employees were mistakenly classified as exempt under FLSA regulations.

Cite: DOL v. Weston Racquet Club

$831K bill comes due for violating wage and hour law

A Long Island company didn’t get a reprieve from the U.S. Supreme Court, and now must pay $831,000 in back wages and damages to workers who didn’t receive overtime pay when due.

The high court recently refused the company’s appeal over the FLSA violations, which occurred more than a decade ago.

Cite: DOL v. Levinson Associates

FLSA regulations scofflaw pays the price

A suburban New York employer didn’t fork over back wages as agreed, so DOL came and got the money.

DOL garnished the company’s bank accounts to collect $110,000 of the $120,000 the employer had agreed to pay, consisting of back overtime and other wages plus damages. The employer wrote a check for $10,000 but reneged on the balance, DOL said.

Cite: DOL v. MSC Painting Co

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