Wage and Hour Division (WHD)
Archived News Release — Caution: Information may be out of date.
Date: April 17, 2015
Contact: Jose A Carnevali or Leo Kay
Phone: 415-625-2631 or 415-625-2630
U.S. Department of Labor
Wage and Hour Division
Release Number: 15-594-SAN
US Department of Labor recovers more than $51,000 in overtime back wages, damages for 19 employees at Marin County-based credit card company
Employer: Central Payment Co., LLC
Sites: Headquarters: 2350 Kerner Blvd., Suite 300, located in San Rafael, CA
Investigation findings: The employer failed to meet the required overtime obligation of time and one-half for hours worked beyond 40 in a work week and instead paid several employees throughout the company a salary regardless of the actual hours worked. These employees were incorrectly classified as “exempt” from overtime. The employer was also found in violation of the record-keeping provisions under the Fair Labor Standards Act.
Resolution: Wage and Hour Division investigators established that 18 employees at the company’s headquarter office were due and paid $51,860 in back wages and liquidated damages.
Quote: “Paying an employee a salary does not necessarily mean the employee is exempt from minimum wage or overtime requirements. The exemption depends on job duties and responsibilities as well as the salary paid. It is an employer’s responsibility to learn and adhere to the laws that apply to his or her business.” said Susana Blanco, the division’s district director in San Francisco. “Other employers who may be paying employees in this manner should be aware that even employees paid a salary can be due overtime if they work more than 40 hours per week.”
Information: The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. Exempt employees generally must meet certain tests regarding their job duties and must be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the department’s regulations. For more information, visit http://www.dol.gov/whd/overtime/fs17a_overview.htm. For more information about federal wage laws administered by the Wage and Hour Division, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.
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