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News Brief

SoCal electrical contractor pays more than $321K in overtime back wages and damages to 158 workers following labor investigation

Employer: Schamber Electric & Sons Inc., doing business as Schamber Electric Inc.

Location: 1674 Rail Road St., Corona, California

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found Schamber Electric violated the overtime provisions of the Fair Labor Standards Act when it paid workers straight time for hours worked beyond 40 per week. Specifically, the employer paid some installers on a piece-rate basis without regard to the number of hours they actually worked, resulting in violations when they worked more than 40 hours in a week without overtime.  The employer paid other workers hourly rates, but paid them straight time even when they worked more than 40 hours. The agency also found the employer violated the recordkeeping provisions for failing to accurately record the hours worked by employees each day and each week.

Resolution: Schamber Electric has paid 158 workers $160,906 in overtime back wages plus an additional, equal amount of $160,906 in liquidated damages.   

Quote: “When employers fail to pay hard-working employees the overtime they’ve rightfully earned, it hurts the workers, their families and their communities,” said Daniel Pasquil, district director of the Wage and Hour Division in West Covina. “The resolution of this investigation sends a strong message to other employers who may be paying workers in this manner – shorting your workers does not pay.  People working for other employers who believe they are not receiving proper overtime are encouraged to give us a call.”

Information: The FLSA requires that covered, nonexempt workers be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus overtime at one and one-half times their regular wages for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records.  Employers are prohibited from retaliating against workers who exercise their rights under the law.

For more information about federal wage laws administered by the Wage and Hour Division, or to file a complaint, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). All services are free and confidential. Information also is available at http://www.dol.gov/whd/.

Read this news release en españól.

Agency
Wage and Hour Division
Date
July 7, 2016
Release Number
16-1017-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali