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Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: 10-509-NEW / BOS 2010-183

Date: 

April 28, 2010

Contact: 

John M. Chavez , Ted Fitzgerald

Phone: 

617-565-2075 , 617-565-2074

US Labor Department recovers more than $107,000 in back wages and damages for employees of Troy, NY, company


ALBANY, N.Y. -- Xero-Fax Inc. of Troy, N.Y., and company owner Herbert Headwell have agreed to pay 34 employees a total of $107,500 in minimum and overtime back wages and liquidated damages to resolve a lawsuit filed by the U.S. Department of Labor alleging violations of the Fair Labor Standards Act.

“When employees are deprived of their rightful wages, employers should know that the Labor Department will not hesitate to take legal action to recover those back wages if necessary,” said Christopher Martin, director of the Wage and Hour Division’s district office in Albany.

The Labor Department’s suit was filed in the U.S. District Court for the Northern District of New York following an investigation by the department’s Wage and Hour Division that disclosed violations of the FLSA’s minimum wage and overtime provisions. Specifically, the investigation found that 34 employees of the company, which provides truck document services, were often not paid the federal minimum wage. Further, the investigation found that these workers were required to work more than 40 hours during many weeks without being compensated properly for the overtime hours worked.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour as well as time and one-half their regular rates of pay for work beyond 40 hours per week. The law also requires that accurate records of employees’ wages, hours and other conditions of employment be maintained, and prohibits retaliation against employees who exercise their rights under the law.

The department’s suit charged the defendants with willful and repeated violations of the minimum wage and overtime provisions of the FLSA since at least Sept. 22, 2008. A consent judgment, entered by the court, orders the defendants to pay the 34 employees a total of $76,060.84 in back wages and $31,439.16 in liquidated damages. If the defendants fail to make the payments, the court could appoint a receiver with the power to seize and liquidate their assets to satisfy the order. The judgment also prohibits the defendants from future violations of the minimum wage, overtime, recordkeeping and anti-retaliation provisions of the FLSA.

The Albany District Office of the Wage and Hour Division conducted this investigation, and the department’s suit was filed by its Regional Solicitor’s Office in New York City. For more information about the provisions of the FLSA, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243) or contact the division’s Albany office at 518-431-4278. Information is also available on the Internet at http://www.dol.gov/whd.

Solis v. Xero-Fax Inc. and Herbert Headwell Civil Action Number: 1:09-CV-00519-LEK-RFT

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.