Calif. furniture company agrees to pay back overtime wages
A furniture distributor based in Calexico, Calif. agreed to pay more than $120,000 in back overtime pay to current and former employees.
After following up on a complaint by an employee of the company, California Labor Commissioner Julie Su conducted an investigation into wage theft accusations, according to a release from the Department of Industrial Relations. The investigation included a review of time cards and payroll records.
The inquiry concluded employees were working several hours of overtime per week, but were not compensated with overtime pay. Under California wage law, which is modeled on the Fair Labor Standards Act, workers are entitled to time-and-a-half pay when working over 40 hours per week.
The distributor hired a lawyer and conducted an internal audit to determine the wages owed.
Officials thanked company managers for their cooperation during the investigation. In the news release, Su said, "This is an example of how effective labor law enforcement benefits everyone."
Following the investigation and audit, the corporation will pay $88,109 to 60 current employees and $33,613 for 83 former workers.
In order to maintain compliance with federal and state labor laws, employers must maintain proper payroll records. Time and attendance software enables supervisors to track employee hours in the event of an audit or investigation.
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