Wage and Hour Division (WHD)
U.S. Department of Labor
WARREN, Mich. -- The U.S. Department of Labor’ Wage and Hour Division has recovered $83,734 in back wages and liquidated damages for 19 employees of Den-Man Contractors Inc., a demolition and construction company in Warren. The division found violations of the Fair Labor Standards Act when the company failed to pay workers overtime at a rate of one and one-half times their hourly rates for all hours worked beyond 40 in a week and to maintain accurate payroll records.
“Investigators found that many of the employees were paid for overtime hours in cash off-the-books at the employees’ straight-time hourly rates, a clear violation of the Fair Labor Standards Act,” said Timolin Mitchell, district director for the Wage and Hour Division in Detroit. “The department is committed to ensuring that workers are paid fairly, in accordance with federal labor laws. We are especially vigilant in areas, such as construction, where these violations are common. No employer should derive an unfair advantage and make financial gains by exploiting their employees.”
A total of $41,867 was due in back wages and an equal amount was assessed in damages. The company has completed the back wages and damages payments totaling $83,734 to the affected employees. Den-Men Contractors has signed a settlement agreement that requires future compliance with the FLSA, documentation of employees’ daily and weekly work hours and payment of the legally required overtime.
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. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees.
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 visit www.dol.gov/whd.
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