Investigators from the division’s Nashville District Office found that employees who worked on one client account, United Services Automobile Association, were not paid for time spent conducting required preparatory work before their shifts started. Specifically, the company failed to pay its employees for the 28-39 minutes they were required to spend each week logging into Web applications before they could access the time clock to start their shift. Because the employees were not paid for all hours worked, they were denied overtime compensation at time and one-half their regular rates of pay for hours worked beyond 40 in a workweek, as required by the FLSA. The employer also failed to keep accurate records of the time employees spent conducting preparatory work.
“Employers must pay workers for all time spent conducting work activities, which includes any work done before or after a shift officially begins or ends,” said Nettie Lewis, district director of the Wage and Hour Division’s Nashville District Office. “This case should be a wake-up call to other employers to review their employment practices and ensure that their employees are being compensated for all work activities they perform.”
Sitel has paid all back wages and civil money penalties and maintain compliance with the FLSA. The firm, doing business as Sitel, provides phone-based business operations support to companies that want to outsource those functions. Sitel’s employees make and receive calls on behalf of Sitel’s clients to sell products, fulfill orders, take claims, provide technical support, answer customer questions and collect payments.
The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour 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. In general, hours worked includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal work activity to the end of the last principal activity of the workday. Additionally, the law requires that accurate records of employees’ wages, hours and other conditions of employment be maintained.
Source: DOL
This information is intended to be
educational and should not be considered legal advice on any specific matter.
