The Department of Labor recently conducted multiple investigations throughout the country, identifying multiple violators of various aspects of the Fair Labor Standards Act (FLSA). The FLSA sets guidelines as to who is protected, and dictates that certain employees must receive 1.5x their hourly rate for any weekly hours worked in excess of 40. The Department of Labor penalized various employers who improperly compensated their employees for mistakes such as incorrectly rounding an hourly wage rate, or playing flat daily rates.
One of the investigations ordered Lowndes Advocacy Resource Center Inc. (LARC) of Georgia to pay $157,473 back to 130 of its employees, because it did not meet the requirements of Section 14(c) of the Fair Labor Standards Act, which allows employers, after obtaining a certificate, to pay a minimum wage less than the Federal minimum to disabled employees. LARC incorrectly rounded the employees’ wage rates, deducted their break time from their daily hours, and did not count travel time as work time, resulting in their gross underpayment.
Similarly, ASAP Courier & Logistics LLC, was ordered to pay 160 of its employees $64,027 in back wages based on underpayment of its delivery drivers. The Florida based company paid its drivers flat daily rates without regard to how many hours they worked, severely reducing the amount of overtime that they should have been paid. Paying flat daily rates is not illegal; however, any hours worked in excess of 40 must be compensated by 1.5x the employee’s hourly rate. Similar to ASAP, Chattanooga Restaurant Group LLC had to pay its employees $153,740 for failing to accurately track their hours, significantly reducing the amount of overtime to which the employees were entitled.
For more information, call our Philadelphia employment lawyers for Fair Labor Standards Act in Philadelphia and South Jersey at the Law Office of Sidkoff, Pincus & Green at 215-574-0600 or contact us online.