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Secretary of Labor Thomas E. Perez
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News Release

WHD News Release: [04/21/2011]
Contact Name: Juan Rodriguez or Elizabeth Todd
Phone Number: (972) 850-4709 or x4710
Release Number: 11-0533-DAL

US Labor Department secures back wages for 40 transport drivers, resolving lawsuit against Katy, Texas-based concrete company

KATY, Texas The U.S. Department of Labor has obtained a consent judgment requiring Leaman Building Materials Inc., doing business as Allied Concrete, to pay 40 current and former transport drivers $140,169 in back wages. The judgment resolves a lawsuit filed by the department against the company for allegedly violating the Fair Labor Standards Act's overtime pay and record-keeping provisions.

Katy-based Leaman Building Materials owns and operates several concrete and cement mixing plants in Houston. The judgment also enjoins the company from future violations of the FLSA.

"The Labor Department is committed to ensuring that employees receive full pay for all hours worked," said Cynthia Watson, regional administrator in the Southwest for the department's Wage and Hour Division. "This company required its employees to work long hours without paying proper overtime compensation. The resolution of this case demonstrates the department's commitment to pursuing those who violate the law and deprive workers of their hard-earned wages."

The Labor Department filed suit in the U.S. District Court for the Southern District of Texas, Houston Division, following an investigation by the Houston District Office of its Wage and Hour Division. The investigation found that the company gave transport drivers incentive pay based on an average of revenue generated from the freight they transported, and incorrectly calculated overtime wages based on incentive pay amounts rather than on the total amount of compensation to which the drivers were entitled. Additionally, the company failed to maintain accurate records of employees' work hours and wages.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 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. The act also requires employers to maintain accurate time and payroll records.

For more information about the FLSA and other federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or the division's Houston office at 713-339-5500. Information is also available on the Internet at http://www.dol.gov/whd.