In Tempe, Ariz., a flooring contractor was cited for willfully violating provisions of the Fair Labor Standards Act governing state requirements for record keeping and overtime payment, according to the Phoenix Business Journal. Eric Murray, director of the Wage and Hour Division's Phoenix District Office indicated the investigation began as a result of an employee complaint about the time and attendance policy.

Workers explained Flooring Demolition Specialist failed to pay them for duties performed in preparation for onsite work and time spend in transit to job locations. Moreover, the employer paid workers a flat wage rate without recognizing the federal mandate for increased remuneration for all work conducted beyond the 40-hour work week. As a result, Murray indicated the demolition company had a strategic advantage over competing companies because it was able to underpay workers while earning a consistent income.

Consequently, Flooring Demolition Specialists paid 24 workers more than $51,000 in overtime and an equal sum for liquidated damages. Going further, the business was forced to pay $6,000 in civil penalties because the employer had actively displayed the federal guidelines pertaining to labor rights. The investigation also found unfair payment was inconsistent for all employees, highlighting the discriminatory nature of the infractions.

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