Wage and Hour Division (WHD)
Archived News Release — Caution: Information may be out of date.
Date: Feb. 28, 2013
Contact: Scott Allen or Rhonda Burke
Phone: (312) 353-6976
U.S. Department of Labor
Wage and Hour Division
Release Number: 13-232-KAN
US Department of Labor investigates Rice Precision Manufacturing, company agrees to pay more than $92,000 in back wages, damages to 12 employees
BALDWIN CITY, Kan -- Rice Precision Manufacturing Inc. has agreed to pay 12 workers a total of $92,727 in back wages and liquidated damages following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found violations of the Fair Labor Standards Act’s overtime provisions at the Baldwin City parts manufacturing company.
“Failing to pay overtime is one of the most common violations we find,” said Patricia Preston, the division’s district director in Kansas City, Mo. “The back wages and liquidated damages found due in this case demonstrate the department’s commitment to ensuring workers receive the wages they have rightfully earned, and to leveling the playing field for employers who play by the rules.”
The investigation determined that Rice Precision Manufacturing failed to pay employees overtime compensation at time and one-half their regular rates of pay for hours worked beyond 40 in a week. Instead, employees were paid straight time for all hours worked. According to the investigation, the company believed that if workers volunteered for overtime, it was acceptable to pay only the straight time hourly rate for those additional hours. Back wages owed to the 12 workers totaled $46,363. An equal amount in liquidated damages was also assessed.
The FLSA provides that employers who violate the law are, as a general rule, liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees. The employer agreed to change its pay practices to comply fully with the FLSA in the future and to pay the back wages and liquidated damages in full.
The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour 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 also are 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 visit http://www.dol.gov/whd.
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