Wage and Hour Division (WHD)
U.S. Department of Labor
PHOENIX -- Flooring Demolition Specialists LLC has paid $103,554 in back wages and liquidated damages to 24 employees after an investigation by the U.S. Department of Labor’s Wage and Hour Division found that the Tempe floor removal contractor willfully violated the overtime and record-keeping provisions of the Fair Labor Standards Act.
The investigation by the division’s Phoenix District Office disclosed that a certain group of employees was paid straight time for all hours worked and did not receive an overtime premium for hours worked beyond 40 per week, as required by the FLSA. Flooring Demolition Specialists also failed to pay employees for hours worked while loading company trucks and for travel time to job sites. Investigators found that other employees of the firm, who performed the same type of work, did receive proper overtime pay.
“Protecting all covered employees, and leveling the playing field for employers, is one of the FLSA’s fundamental principles. This employer benefited from an unfair advantage over competitors by not paying overtime to a group of employees” said Eric Murray, director of the Wage and Hour Division’s Phoenix District Office. “We were able to work with this business to create a settlement agreement that will protect all its employees. It benefits the workers, the employer and the community when we can work together to achieve sustainable FLSA compliance.”
Flooring Demolition Specialists has paid $51,777 in overtime back wages and an equal amount in liquidated damages to the affected workers. The employer has also paid $6,000 in civil money penalties because of the willful nature of the violations found. A settlement agreement with the department requires Flooring Demolition Specialists to post notices of FLSA’s rights in prominent locations accessible to all workers, in English and Spanish, along with the Wage and Hour Division’s contact information. Every employee will be given a copy of the notice. The employer has also agreed to make and provide to Wage and Hour upon request periodic audits of its payroll to ensure proper payment of wages to all employees.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour, as well as one and one-half times their regular rates for every hour worked beyond 40 per week. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment, and prohibits retaliation against employees who exercise their rights under the law. 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 laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or the division’s Phoenix District Office at 602-514-7100. Information is also available at http://www.dol.gov/whd.
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