Wage and Hour Division (WHD)
U.S. Department of Labor
85 employees of Pensacola, Fla.-based Industrial Energy Services to receive more than $174,000 in back wages after US Department of Labor investigation
JACKSONVILLE, Fla. -- Pensacola-based electrical contractor Industrial Energy Services has agreed to pay $174,719 in back wages to 85 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division that found violations of the minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act.
Industrial Energy Services is a national electrical contractor. The company’s primary office is located in Pensacola and its corporate office is in Manahawkin, N.J.
“The Labor Department is committed to ensuring all workers receive the pay they earn,” said Michael Young, director of the Wage and Hour Division’s Jacksonville District Office. “We will not allow employers to profit by not paying their workers properly, and disregarding FLSA rules on minimum wage and overtime compensation.”
Investigators found that the company had lost its lines of credit, which created a shortage of cash to cover the payroll. This situation resulted in $52,627 in unpaid wages for 50 employees.
Additionally, the company failed to record the actual number of hours worked by field employees and did not pay time and one-half their regular rates of pay for hours exceeding 40 in a workweek, as required under the FLSA. Overtime violations resulted in another $122,092 owed in back wages to 78 workers.
Seven of the employees are due back wages for missed payroll only. The rest are due back wages for both missed payroll and overtime.
The company agreed to pay all back wages due to the affected employees and to maintain future compliance with the FLSA by keeping accurate records, and paying full and proper wages for all hours employees work.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked plus time and a 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.
The Wage and Hour Division’s Jacksonville office can be reached at 904-359-9292. For more information about the FLSA, call the division’s national toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at http://www.dol.gov/whd.
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