The Brynn Marr Body Shop in Jacksonville, North Carolina, will pay 15 employees $19,174 in back wages for unpaid overtime, following an investigation by the Department of Labor's Wage and Hour Division. The inspection revealed the employers were not complying with the Fair Labor Standards Act (FLSA) recordkeeping or overtime provisions.
"Employers are legally obligated to maintain accurate records and pay for all hours worked, including proper overtime compensation when employees work more than 40 hours in a week," said Richard Blaylock, director of the Wage and Hour Division's Raleigh District Office.
Blaylock pointed out that employers practicing similar payroll policies should enact immediate changes before they are also investigated and forced to pay penalties and back wages. The FLSA mandates that all covered employees must receive at least minimum wage for their time and attendance in addition to time-and-a-half rates if they work more than 40 hours in a week.
In the case of the Brynn Marr Body Shop, employees were misclassified as exempt workers, and therefore, did not receive premium pay for overtime. Instead, the employer only issued standard wages for additional hours.
If employers are not keeping accurate records of employee worktime, they can install a new payroll processing system that keeps track of these important totals to ensure workers receive the pay they are owed.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.