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WHD News Release: [10/23/2012]
Contact Name: Elizabeth Todd or Juan Rodriguez
Phone Number: (972) 850-4710 or x4709
Release Number: 12-1760-DEN
Arvada, Colo., manufacturing company pays nearly $40,000 in back wages, liquidated damages following US Labor Department investigation
ARVADA, Colo. Colorado Precision Machining Inc. has paid a total of $39,082 in back wages and liquidated damages to 10 machinists, following an investigation by the U.S. Department of Labor's Wage and Hour Division that found violations of the Fair Labor Standards Act's minimum wage, overtime and record-keeping provisions.
"The FLSA provides that employers who violate the law are, as a general rule, liable to employees for back wages and an equal amount in liquidated damages," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "Employees of Colorado Precision Machining worked long hours, without being paid proper minimum wage and overtime compensation. This practice is illegal and unacceptable and, as demonstrated in this case, we are using all tools available, including the assessment of liquidated damages, to ensure that employees receive the compensation to which they are entitled under law."
An investigation conducted by the division's Denver District Office found that the company violated the FLSA by paying employees less than the federal minimum wage of $7.25 per hour and "straight time" wages, rather than time and one-half their regular rates of pay for hours worked over 40 in a week, as required under the act's overtime provision. Additionally, the company made illegal wage deductions for such items as calipers, micrometers and other hand tools, resulting in wages falling below the federal minimum wage. The employer also failed to maintain accurate records of employees' wages and work hours, in violation of the FLSA's record-keeping requirements.
Colorado Precision Machining manufactures small parts for a variety of medical and dental equipment and internal parts for spray paint machines. The company has agreed to future compliance with the FLSA. Back wages and liquidated damages have been paid in full.
The FLSA 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, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers are also required to maintain accurate time and payroll records.
For more information about the FLSA and other federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or the division's Denver District Office at 720-264-3250. Information is also available on the Internet at http://www.dol.gov/whd/.
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