Wage and Hour Division (WHD)
Archived News Release — Caution: Information may be out of date.
Date: Jan. 10, 2013
Contact: Michael D'Aquino
U.S. Department of Labor
Wage and Hour Division
Release Number: 12-2481-ATL (04)
Kenneth McPeek Racing Stables pays 142 employees more than $59,000 in back wages following US Labor Department investigation
LEXINGTON, Ky. -- Kenneth McPeek Racing Stables Inc., doing business as Kenneth McPeek, has paid 142 employees $59,339 in back wages following an investigations by the U.S. Department of Labor’s Wage and Hour Division, which disclosed violations of the Fair Labor Standards Act’s overtime and record-keeping provisions. Kenneth McPeek Racing Stables is a horse farm that breeds, trains and sells thoroughbred racehorses, and participates in commercial racing at various racetracks throughout the United States.
An investigation conducted by the division’s Louisville District Office found that several nonexempt employees, who had been engaged to work at racetracks, were improperly classified as exempt from receiving overtime pay. These employees were paid straight-time wages for all hours worked, rather than time and one-half their regular rates of pay for hours worked beyond 40 in a workweek, as required. Additionally, the employer did not maintain accurate records of the employees’ work hours and failed to post the FLSA poster in the workplace.
“The Wage and Hour Division is committed to ensuring that all workers are employed in compliance with the law and paid their rightful wages,” said Karen Garnett, director of the Wage and Hour Division’s Louisville District Office. “Employers have a legal obligation to properly classify and compensate workers for overtime hours. This case serves as a reminder that employers must be thorough in analyzing and ensuring that their pay practices are in full compliance with the law.”
Kenneth McPeek Racing Stables has paid all back wages owed to the affected employees and also agreed to maintain future compliance with the FLSA by keeping accurate records of hours worked and ensuring all employees are properly classified and compensated for their full work periods, including overtime hours, in accordance with the law.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour as well as time and one-half their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law.
There are a number of exemptions from the minimum wage and overtime provisions of the FLSA for employees employed in agriculture. For more information, see http://www.dol.gov/whd/regs/compliance/whdfs12.htm.
The department has a smartphone application to help employees independently track the hours they work and determine the wages they are owed. Available in English and Spanish, users can track regular work hours, break times and any overtime hours for one or more employers. This new technology is significant because, instead of relying on their employers’ records, workers now can keep their own records. This and other Labor Department apps are available at http://www.dol.gov/dol/apps.
The division’s Louisville office can be reached at 502-582-5226. Information on FLSA and other wage laws is available by calling the division’s toll-free helpline at 866-4US-WAGE (487-9243) or by visiting http://www.dol.gov/whd.
U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.