DOL sues Serklan Inc. for overtime back wages
The U.S. Department of Labor recently filed a lawsuit against Yonkers, New York-based commercial laundry and cleaning company Serklan Inc. for violating the Fair Labor Standards Act (FLSA) minimum wage, overtime and recordkeeping provisions, the Mid Hudson Review reports.
Instead of paying workers an hourly wage, the employer has allegedly been compensating employees with a flat wage for all time attendance since at least 2009, the news agency reports. In addition, the company failed to pay workers premium rates (time-and-a-half) for overtime work.
In a survey of employees in low-paying industries, such as the laundry and cleaning sector, the National Employment Law Project found rampant wage theft violations in New York City, Chicago and Illinois. To address illegal labor rights practices, the Wage and Hour Division is actively seeking out industries and employers who are not complying with the FLSA.
If businesses are enforcing payroll policies that do not line up with federal labor laws, employers may be asked to furnish back wages for employees, pay penalties and bring practices up to code. To avoid investigations and expensive employee lawsuits, businesses can ensure they are accurately tracking employee attendance by installing an updated timekeeping system.
Instead of paying workers an hourly wage, the employer has allegedly been compensating employees with a flat wage for all time attendance since at least 2009, the news agency reports. In addition, the company failed to pay workers premium rates (time-and-a-half) for overtime work.
In a survey of employees in low-paying industries, such as the laundry and cleaning sector, the National Employment Law Project found rampant wage theft violations in New York City, Chicago and Illinois. To address illegal labor rights practices, the Wage and Hour Division is actively seeking out industries and employers who are not complying with the FLSA.
If businesses are enforcing payroll policies that do not line up with federal labor laws, employers may be asked to furnish back wages for employees, pay penalties and bring practices up to code. To avoid investigations and expensive employee lawsuits, businesses can ensure they are accurately tracking employee attendance by installing an updated timekeeping system.
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