DOL sounds off about radio payroll practices

Casper, Wyoming-based Mount Rushmore Broadcasting is making waves, but not for its excellent entertainment. Following an investigation by the Department of Labor's Wage and Hour Division, the company's owner Jan Charles Gray was slapped with a lawsuit that aims to collect a total of $79,445 in back pay for six employees in addition to an equal amount in damages.

According to the suit, employees of Mount Rushmore Broadcasting did not receive the wages they should have earned for their time and attendance. In fact, Cynthia Watson, regional administrator for the Wage and Hour Division's Southwest Office, said that some staff members worked as many as 88 hours in a standard workweek and did not receive additional compensation for overtime.

Because the employer paid workers fixed salaries regardless of their total hours worked, their pay sometimes dipped below the federal minimum wage of $7.25 per hour. Gray told the Casper-Star Tribune that the allegations are a strike against small businesses.

Companies of any size can avoid expensive violations and embarrassing lawsuits by using a payroll processing system to accurately track all hours worked and set up alerts when individuals are nearing or have surpassed allowable overtime totals.