Kryger Glass Co. agrees to pay more than $107,000 in back wages to 53 employees following US Department of Labor investigation

Kryger Glass Co. has agreed to pay 53 workers back wages of $107,476 following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found violations of the Fair Labor Standards Act’s overtime and record-keeping provisions when night delivery drivers were found to be improperly classified as exempt from overtime requirements.

“This investigation highlights the Wage and Hour Division’s commitment to ensuring that employees receive their full pay, as required by federal labor laws,” said Patricia Preston, the division’s district director in Kansas City. “An employer cannot avoid its overtime obligations by incorrectly classifying drivers as being involved in interstate commerce and exempt from overtime.”

The investigation determined that Kryger Glass Co. failed to pay nonexempt employees overtime compensation at time and one-half their regular rates of pay for hours worked beyond 40 in a week, as required by the FLSA. Instead, the company wrongly considered the night delivery drivers to be exempt from overtime requirements and paid them fixed salaries each week, without regard to the number of hours worked. Record-keeping violations were also cited during the investigation when the employer failed to maintain time records for the employees improperly classified as exempt.

Investigators found that $52,187 was due to 33 employees at the Omaha, Neb., location, and $55,289 was due to 20 employees at the Kansas City location. The Kansas City-based company operates retail auto glass repair shops and wholesales products to those retail stores and auto dealerships.

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. Employers also are required to maintain accurate time and payroll records. Only drivers, their helpers, loaders who are responsible for proper loading, and mechanics working directly on motor vehicles that are to be used in transportation of passengers or property in interstate commerce can be exempt from the overtime provisions of the FLSA under the specific exemption claimed by this employer. Additional information about this exemption can be found at http://www.dol.gov/whd/regs/compliance/whdfs19.htm.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.