Wage and Hour Division (WHD)
U.S. Department of Labor
GTM Sportswear agrees to pay more than $97,000 in back wages to 133 employees following Labor Department investigation of sportswear company
MANHATTAN, Kan. -- It’s Greek to Me Inc., which operates as GTM Sportswear in Manhattan, has agreed to pay 133 workers a total of $97,762 in back wages following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found violations of the Fair Labor Standards Act’s overtime and record-keeping provisions when inside sales representatives were found to be improperly classified as exempt from overtime requirements.
“One of the most common violations in the sales industry is improperly classifying workers as being exempt from overtime,” said Patricia Preston, the division’s district director in Kansas City, Mo. “The criteria for exemption from overtime are very specific to ensure workers are properly compensated for all hours worked. Simply paying someone a salary does not automatically make them exempt. The department is committed to ensuring workers receive their lawful compensation and to maintaining a level playing field where all employers play by the same rules.”
The investigation determined that GTM Sportswear failed to pay employees overtime compensation at time and one-half their regular rates of pay for hours worked beyond 40 in a week. Instead, employees were paid fixed salaries each week, without regard to the number of hours worked. Record-keeping violations were also cited during the investigation when the employer failed to keep time records for the employees improperly classified as exempt.
The violations affected employees from GTM Sportswear’s headquarters facility in Manhattan. GTM Sportswear customizes apparel with screen printing, embroidery and other personalization that is sold nationwide.
The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. For an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the department’s regulations.
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.
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 http://www.dol.gov/whd.
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