An investigation conducted by the division’s Raleigh District Office found the employer failed to pay overtime compensation at time and one-half the employees’ regular rates of pay for hours worked over 40 in a workweek, as required. Instead, the employer paid employees who were not exempt from overtime requirements fixed salaries, without regard to the number of hours worked. The employer also failed to keep accurate records of the hours employees worked.
“Simply paying an employee a salary does not eliminate the requirement to pay overtime,” said Richard Blaylock, director of the Wage and Hour Division’s Raleigh office. “This employer had full knowledge of the law’s requirements, yet chose to pay employees less than they had legally earned. This practice is unacceptable. The back wages found due and the assessment of a civil money penalty in this case should put other employers on notice to ensure that they are paying employees in compliance with the law.”
A previous investigation of PCM Construction Services by the Wage and Hour Division found more than $93,600 due to 114 employees for violations of the FLSA’s overtime requirements. The employer has agreed to pay the back wages found due in full, and to comply with the FLSA in the future. PCM Construction Services is a general contractor engaged in removing debris from construction sites.
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Source: DOL
This information is intended to be
educational and should not be considered legal advice on any specific matter.
