Wage and Hour Division (WHD)
Archived News Release — Caution: Information may be out of date.
Date: June 13, 2013
Contact: Scott Allen or Rhonda Burke
Phone: (312) 353-6976
U.S. Department of Labor
Wage and Hour Division
Release Number: 13-978-CHI
Detroit-based Giorgi Concrete pays more than $112,000 in overtime back wages and penalties following US Labor Department investigation
Investigators found falsified records and repeat labor violations
DETROIT -- Giorgi Concrete, a Detriot-based commercial cement company, has paid $106,334 in back wages to 38 workers following an investigation by the U.S. Department of Labor’s Wage and Hour Division, which found violations of the Fair Labor Standards Act’s overtime and record-keeping provisions. The company was assessed an additional $5,984 in civil money penalties for repeat violations of the FLSA. It has signed a settlement agreement with the department agreeing to specific compliance measures to ensure future compliance with the law.
“Giorgi Concrete, a company with a history of FLSA violations, furnished falsified records to Wage and Hour Division investigators in an attempt to conceal the actual number of hours worked and overtime pay due to their employees,” said Timolin Mitchell, the Wage and Hour Division’s district director in Detroit. “As demonstrated by the penalty assessment and the settlement agreement in this case, the Wage and Hour Division is vigorously pursuing employers who commit willful and/or repeat violations of the law. We want to hold them accountable and ensure their employees are protected against future labor violations.”
Through the use of extensive enforcement techniques, including work-site surveillance and Spanish-language employee interviews, investigators determined that Giorgi Concrete falsified time sheets by reflecting inaccurate hours of work for employees, such as starting the work day at 7 a.m. when employers actually reported to work at 6 a.m. Employees often worked an average of 50 hours a week, but were not paid for preshift and postshift work. They were not paid overtime at time and one-half their regular rates of pay for hours worked over 40 in a workweek.
The company has entered into a settlement agreement with the department, which includes paying all back wages due, training workers on their FLSA rights and maintaining accurate payroll records in the future. Giorgi Concrete will also conduct internal quality reviews of its payroll records to ensure continued compliance with the FLSA.
Giorgi Concrete was the subject of a previous Wage and Hour Division investigation that disclosed similar violations of the FLSA’s overtime and record-keeping provisions.
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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