Wage and Hour Division (WHD)
U.S. Department of Labor
MIDLAND, Texas -- ECAD Inc. in Midland has paid $43,940 in overtime back wages to 31 current and former sales representatives following an investigation by the U.S. Department of Labor’s Wage and Hour Division which found violations of the Fair Labor Standards Act overtime and record-keeping provisions.
The investigation by the division’s Albuquerque District Office revealed that the company provided employees with compensatory time off for hours worked over 40 in a workweek instead of paying overtime at time and one-half their regular rates of pay, as required by the FLSA. Additionally, the required record keeping was not maintained.
“Nonexempt employees who work more than 40 hours in a workweek are entitled to receive time and one-half their regular rates of pay,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “The Wage and Hour Division is committed to making sure employees collect all the wages they have rightfully earned. Other employers should use this as an opportunity to ensure that they are paying their employees in compliance with the law. ”
ECAD, which sells design software, has agreed to comply with the requirements of the FLSA in the future. Back wages have been made in full.
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 of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Additionally, employers must maintain accurate time and payroll records.
For more information about federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Albuquerque office at 505-248-6100. Information also is available at http://www.dol.gov/whd.
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