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Wage and Hour Division (WHD)

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Archived News Release — Caution: Information may be out of date.

Press Releases

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

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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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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.