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Secretary of Labor Thomas E. Perez
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News Release

WHD News Release: [01/10/2012]
Contact Name: Elizabeth Todd or Juan Rodriguez
Phone Number: (972) 850-4710 or x4709
Release Number: 11-1535-DAL

Temporary staffing agency in Dallas to pay more than $244,000 in overtime back wages following US Labor Department investigation

DALLAS — The Temp Team Inc., based in Dallas, has agreed to pay $244,104 in back wages to 252 current and former employees after an investigation by the U.S. Department of Labor's Wage and Hour Division found violations of the Fair Labor Standards Act's overtime and record-keeping provisions. The Temp Team Inc. provides staffing services through recruiting, hiring and placing temporary employees at client establishments nationwide.

"The Wage and Hour Division will aggressively pursue those employers who do not properly pay their employees for all hours worked," said Cynthia Watson, the division's regional administrator in the Southwest. "Employees of this agency worked as many as 79 hours in a week without overtime compensation, a pay practice that is illegal. The resolution of this case should remind all temporary staffing agencies of their responsibilities to properly record and compensate employees for full work periods in compliance with federal law."

An investigation conducted by the division's Dallas District Office found that 250 Temp Team employees who had been placed at various local client establishments, including Neman Printing, Rehrig Pacific and Dallas Market Hall, were paid "straight time" wages, rather than time and one-half their regular rates for hours worked over 40 in a week, in violation of the FLSA. Two additional Temp Team employees had been improperly classified as exempt from the FLSA and consequently denied the overtime compensation and protections guaranteed them under the act. The company also failed to maintain accurate records of its employees' total work hours and wages, in violation of the FLSA's record-keeping provisions.

The Temp Team agreed to pay the full amount of back wages, properly classify the affected employees as nonexempt under the FLSA, and maintain accurate time and payroll records for all employees in the future.

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. Employers also must maintain accurate time and payroll records. Under the FLSA, employees who are placed by a staffing agency at a client site are typically considered jointly employed by the agency and the client(s), and joint employers are responsible for ensuring FLSA compliance.

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 its Dallas District Office at 817-861-2150. Information is also available on the Internet at ttp://www.dol.gov/whd/.