First Med Family Clinic employees receive $22,000 in back wages
After investigating the payroll practice at five First Med Family Clinic offices across Tennessee, the Department of Labor's Wage and Hour Division claimed the employer was violating the Fair Labor Standards Act (FLSA) and owed 14 employees a total of $22,240 in back pay.
Investigators found some employees were not receiving the overtime pay they should have earned for their time and attendance exceeding 40 hours in a single workweek because they were incorrectly classified as exempt from the FLSA. Because individuals hired as receptionists, medical billing personnel and lab technicians were paid on a salary basis, the employer did not pay them time-and-a-half for their overtime employee attendance.
"Simply putting employees on a salary does not eliminate the need to pay them overtime." said Sandra Sanders, Nashville's district office director of the Wage and Hour Division. "Employers are legally obligated to maintain accurate records and to pay employees for all hours worked, including proper overtime compensation when hours exceed 40 in a workweek."
The investigation also found that First Med Family Clinic locations were not keeping accounts of time and attendance totals after paychecks were issued. The FLSA says businesses should hold onto these documents for three years.
Investigators found some employees were not receiving the overtime pay they should have earned for their time and attendance exceeding 40 hours in a single workweek because they were incorrectly classified as exempt from the FLSA. Because individuals hired as receptionists, medical billing personnel and lab technicians were paid on a salary basis, the employer did not pay them time-and-a-half for their overtime employee attendance.
"Simply putting employees on a salary does not eliminate the need to pay them overtime." said Sandra Sanders, Nashville's district office director of the Wage and Hour Division. "Employers are legally obligated to maintain accurate records and to pay employees for all hours worked, including proper overtime compensation when hours exceed 40 in a workweek."
The investigation also found that First Med Family Clinic locations were not keeping accounts of time and attendance totals after paychecks were issued. The FLSA says businesses should hold onto these documents for three years.
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