Klaasmeyer Construction Company in Conway, Arkansas, recently paid $222,602 in overtime backwages to 204 employees. The U.S. Department of Labor's Wage and Hour Division recently investigated the company and found that its payroll practices were in violation of the Fair Labor Standards Act (FLSA) provisions for a failure to properly pay employees for their overtime employee attendance.

Investigators found that the telecommunications construction company was not including workers' bonus payments as part of their pay rate when calculations overtime wages. According to the FLSA, employers are not required to pay employees a non-discretionary bonus. However, when a bonus is paid, it must be factored into employee's standard pay rate when determining overtime.

"The construction company industry employs some of our nation's most vulnerable workers," said regional administrator of the Wage and Hours Division in the Southwest. "The Department of Labor is committed to ensuring that all employers who are in violation of the FLSA are held accountable, and employees receive all the wages they have rightfully earned."

In addition to paying back wages, Klaasmeyer construction has agreed to fully comply with labor laws in the future. Construction companies can avoid expensive penalties by keeping a mobile timeclock on the job site.

---

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.