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News Release

AT&T Prime Communications LP to pay $122,254 in overtime back wages following a US Department of Labor investigation

Workers in 11 states impacted

HOUSTON, Texas — Prime Communications LP, doing business as AT&T Prime Communications LP, has agreed to pay $122,254 in back wages to 255 current and former employees as a result of investigations by the U.S. Department of Labor that found violations of the Fair Labor Standards Act.

An initial investigation by the department's Wage and Hour Division Albuquerque District Office found FLSA violations that led to a corporatewide investigation coordinated by the division's Houston District Office. The investigations found that AT&T Prime Communications violated the overtime provisions of the FLSA by failing to include commissions earned by hourly nonexempt employees into the regular rate of pay for overtime purposes at all affected office locations. The affected employees worked in Alabama, Florida, Indiana, Georgia, Louisiana, New York, North Carolina, Ohio, Pennsylvania, Texas and South Carolina.

"This was a systemic, corporatewide issue that affected workers throughout the country," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "The FLSA has been in effect for 75 years, and employers are responsible for knowing and following the laws that apply to their businesses. We are pleased that AT&T Prime Communications has agreed to change its pay practices at all its locations."

AT&T Prime Communications is an authorized dealer for AT&T wireless telecommunication plans. The company operates in 17 states with approximately 385 stores and has more than 1,300 employees nationwide.

AT&T Prime Communications has agreed to comply with all applicable FLSA provisions by correctly calculating and paying employees the overtime premium of time and one-half the regular rate of pay for all hours worked over 40 in a week and incorporating commissions earned by nonexempt hourly employees into the regular rate of pay for overtime purposes.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour. Workers who are not employed in agriculture and not otherwise exempt from overtime compensation are entitled to time and one-half their regular rates of pay for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and it prohibits employers from retaliating against employees who exercise their rights under the law.

For more information about federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or its Houston District Office at 713-339-5500. Information also is available at

Wage and Hour Division
October 23, 2014
Release Number
Media Contact: Juan Rodriguez