Dallas-based Temp agency ordered to pay $244,000 in back wages
The Temp Team, a Dallas-based recruitment agency, recently agreed to pay 252 employees $244,104 in back wages for unpaid overtime. The U.S. Department of Labor recently investigated the business and found the employer was violating the Fair Labor standards Act (FLSA) recordkeeping and overtime provisions as the result of employee misclassifications.
"The Wage and Hour Division will aggressively pursue those employers who do not properly pay their employees for all hours worked," said Cynthia Watson, regional administrator of the Southwest Wage and Hour Division. "Employees of this agency worked as many as 79 hours in a week without overtime compensation, a pay practice that is illegal."
To remain in compliance with the FLSA, employers must pay non-exempt employees at a rate that meets or exceeds minimum wage standards and also premium remuneration (time-and-a-half) for any employee attendance beyond 40 hours a week. To resolve the investigation, The Temp Team has agreed to furnish back pay, reclassify the employees involved and bring recordkeeping practices up to code.
The Wage and Hour Division explains that temporary employees who are placed by a staffing agency are usually considered jointly-employed. To ensure proper payment is made, agencies and can use a remote timekeeping system that will enable employees to record time attendance even while they are working for hired client.
"The Wage and Hour Division will aggressively pursue those employers who do not properly pay their employees for all hours worked," said Cynthia Watson, regional administrator of the Southwest Wage and Hour Division. "Employees of this agency worked as many as 79 hours in a week without overtime compensation, a pay practice that is illegal."
To remain in compliance with the FLSA, employers must pay non-exempt employees at a rate that meets or exceeds minimum wage standards and also premium remuneration (time-and-a-half) for any employee attendance beyond 40 hours a week. To resolve the investigation, The Temp Team has agreed to furnish back pay, reclassify the employees involved and bring recordkeeping practices up to code.
The Wage and Hour Division explains that temporary employees who are placed by a staffing agency are usually considered jointly-employed. To ensure proper payment is made, agencies and can use a remote timekeeping system that will enable employees to record time attendance even while they are working for hired client.
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