Investigators from the division’s Albuquerque District Office found that roofers were paid a piece rate, without consideration of hours worked, which resulted in a minimum wage of less than $7.25 an hour. The workers were not compensated at time and one-half their regular rates of pay for hours worked over 40 in a workweek. Additionally, accurate records of employees’ work hours and wages were not kept.
“Paying workers on a piece-rate basis does not absolve an employer of its responsibility to pay minimum and overtime wages,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “BAC Enterprises deprived hard-working roofers more than $52,000 in wages they earned. Roofers worked as many as 63 hours per week with no overtime compensation. This case should remind other construction industry employers to examine their own payroll practices to ensure their workers are paid in compliance with the law.”
BAC has agreed to maintain future compliance with the FLSA and has paid all back wages due to the affected workers.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also are required to maintain accurate time and payroll records.
Source: DOL
This information is intended to be
educational and should not be considered legal advice on any specific matter.
