Skip to page content
Wage and Hour Division
Bookmark and Share

Wage and Hour Division (WHD)

print friendly version of this press releasePrinter-Friendly Version

Archived News Release — Caution: Information may be out of date.

Press Releases

Date:  June 11, 2014

Contact:  Jose A. Carnevali

Phone:  415-625-2631

U.S. Department of Labor
Wage and Hour Division
Release Number: 14-1129-SAN (SF-51)

California construction contractor to pay $292,184 in overtime back wages following US Department of Labor investigation

WEST COVINA, Calif. -- GM Sager Construction Inc. has agreed to pay $146,092 in overtime back wages and an equal amount in liquidated damages to 26 workers after an investigation by the U.S. Department of Labor found the Pomona, Calif.-based concrete and asphalt paving contractor in violation of the Fair Labor Standards Act’s overtime and record-keeping provisions. The employer also agreed to record all hours worked accurately, including travel time.

“Employers must record and pay for all hours of work,” said Daniel Pasquil, director of the Wage and Hour Division’s West Covina District Office. “This includes travel time between work sites. We urge all employers to review their pay practices to ensure compliance.”

Investigators established that GM Sager Construction Inc. failed to pay 26 employees for their travel time between the last job site to the company’s yard at the end of each day and for work once employees returned to the yard. The employer failed to record and count this time as hours worked.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour. Earnings may be determined on a piece-rate basis, but overtime pay must be computed using the employee’s average hourly rate. 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.

For more information about the FLSA and other federal wage laws, call the division’s toll-free helpline at 866-4US-WAGE (487-9243) or its West Covina office at 626-966-0478. Information is also available at


U.S. Department of Labor releases are accessible on the Internet at 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