Investigators from the Jacksonville District Office determined that C&B Electrical Contractors failed to pay overtime to employees working more than 40 hours in a workweek. The firm paid employees on a piece rate, which is permissible under the FLSA, but one and one-half times their regular rate of pay for all hours worked over 40 is still required. Additionally, the employer failed to maintain accurate records of hours worked and payments made to its employees.
“Employers are legally obligated to maintain accurate records and to pay employees for all hours worked, including proper overtime compensation when hours exceed 40 in a workweek,” said Michael Young, director of the Wage and Hour Division’s Jacksonville District Office. “Employers should take this investigation as an opportunity to evaluate their own payroll practices and ensure they are paying their employees in compliance with the law. All employees deserve to be paid all the wages to which they are legally entitled. Our vigorous enforcement of these laws also helps to ensure a level playing field for all employers.”
In addition to paying the back wages, C& B Electrical Contractors, which provides residential, new construction, warranty and service electrical work throughout Central Florida, agreed to comply with the overtime requirements, and to keep accurate time and payroll records. The company has also decided to simplify its pay practices by setting an hourly rate for all employees.
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 workweek. Simply paying employees a salary, a piece rate or a day rate does not exempt them from overtime protections. 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.
