Employment agency coughs up $2 million in back wages
Hutco Inc., a Louisiana-based industrial services and employment firm, is in trouble with the DOL's Wage and Hour Division for using improper payroll and employee tracking practices. The agency recently went under investigation for poor time and attendance record-keeping and incorrect pay calculation, which left many employees without their due overtime compensation, according to Bloomberg Businessweek.
Employers take a big risk by not paying their workers correctly when they put in more than 40 hours a week. Companies seem to be getting sued every day for this Fair Labor Standards Act violation, and the fines are nothing to scoff at. For example, Hutco owes 2,267 employees nearly $2 million in back wages to make up for its illegal practices.
"Employers cannot avoid their legal responsibility to pay overtime by using evasive practices that seek to undermine labor laws and deny workers their rightful wages," Secretary of Labor Seth Harris said.
Harris added that investigations like the one at Hutco not only return well-earned money to employees but also ensure that a company will comply with the law in the future.
Along with repaying its workers, Hutco has also agreed to continue to comply with the FLSA and maintain accurate records of employee time and attendance.
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