Wage and Hour Division (WHD)
U.S. Department of Labor
HAMMOND, La. -- Statewide Transport Inc., a commercial delivery service company in Hammond, has agreed to pay $271,303 in overtime back wages to 105 current and former delivery drivers and warehouse workers, following an investigation by the U.S. Department of Labor that found violations of the Fair Labor Standards Act throughout the company’s branches in Arkansas, Louisiana and Mississippi.
“Employers must ensure that their pay practices comply with the appropriate statutes,” said Cynthia Watson, regional administrator of the Labor Department’s Wage and Hour Division in the Southwest. “Employees worked as many as 78 hours in a workweek without receiving overtime compensation. That practice is illegal.”
The investigation by the Wage and Hour Division’s New Orleans District Office found that Statewide Transport paid drivers “straight time” wages for all hours worked, rather than time and one-half their regular rates of pay for hours worked over 40 in a week as required by the FLSA. Additionally, warehouse employees were paid on an hourly or piece-rate basis and did not receive a premium rate for the overtime hours they worked.
Employees affected by the violations were located in Hammond, Kenner, Lafayette and Shreveport, La; Pearl, Miss.; and North Little Rock, Ark. Statewide Transport agreed to pay all back wages due and to maintain future compliance with the FLSA.
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 of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records.
For more information about the FLSA, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its New Orleans office at 504-589-6171. Information is also available on the Internet at http://www.dol.gov/whd.
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