News Release

Southern California Claims Management Company Pays Employees $95,120 After U.S. Department of Labor Finds Minimum Wage Violations

LOS ANGELES, CA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Control Expert Inc. – a vehicle insurance claims management company based in El Segundo, California – has paid $95,120 in back wages to 99 employees to resolve violations of the Fair Labor Standards Act’s (FLSA) minimum wage requirements.

WHD investigators found that Control Expert Inc. failed to pay employees any wages for two entire pay periods, and by doing so caused minimum wage violations. The employer also violated recordkeeping requirements when it failed to keep an accurate record of the number of hours employees worked.  

“The U.S. Department of Labor is committed to ensuring that workers get paid all the wages they have legally earned,” said Wage and Hour District Director Kimchi Bui in Los Angeles, California. “The Wage and Hour Division will continue to enforce the law so all employers abide by the same rules and compete on a level playing field. We encourage employers and employees to call us for assistance to improve their understanding of the labor laws and to learn about our on-line educational tools, so they can avoid violations like those found in this investigation.”

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos and confidential calls to local WHD offices.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/agencies/whd.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the paid sick leave and expanded family and medical leave provisions of the Families First Coronavirus Response Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

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Agency
Wage and Hour Division
Date
July 29, 2020
Release Number
20-1434-SAN
Contact: Leo Kay
Phone Number
Contact: Jose Carnevali
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