Wage and Hour Division (WHD)
U.S. Department of Labor
US Department of Labor recovers more than $209,000 in overtime pay for employees at Novato, Calif.-based Enwisen Inc.
SAN FRANCISCO -- Enwisen Inc., a human resource services company based in Novato, Calif., has paid $209,176 in back wages to 29 workers following an investigation by the U.S. Department of Labor's Wage and Hour Division that found employees were misclassified as exempt from overtime pay.
Investigators determined that the company had paid the employees on a salary basis when they should have received time and one-half their regular rates of pay for the hours they worked beyond 40 in a week. The back pay was calculated after examining pay records from August 2008 through August 2010.
"We are committed to ensuring that employees who should be paid overtime receive that pay," said George Friday Jr., regional administrator of the Wage and Hour Division office in San Francisco. "Employers who do not carefully assess whether an employee’s duties truly exempt him or her from overtime pay coverage may find a Wage and Hour Division investigator knocking at their door."
The federal Fair Labor Standards Act provides an exemption from both minimum wage and overtime pay for workers employed in bona fide executive, administrative, professional and outside sales positions. It also exempts certain computer employees. To qualify, workers generally must meet certain tests described in the FLSA regarding their job duties and be paid on a salary basis no less than $455 per week.
The FLSA further requires that covered employees be paid at least the federal minimum wage of $7.25 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. Employers must also maintain accurate time and payroll records.
The case was investigated by the Wage and Hour Division San Francisco District Office. For more information about the FLSA, call that office at 415-625-7720 or the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at www.dol.gov/whd.
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