A North Carolina construction company recently learned an expensive lesson - paying employees on a salary basis does not guarantee exemption status. The United States Department of Labor recently investigated PCM Construction Services in Apex, and allegedly found overtime and recordkeeping violations.

The Fair Labor Standards Act (FLSA) establishes that all nonexempt employees must be paid at least minimum wage - $7.25 - for all of their hours worked and one-and-a-half times that amount if they work more than 40 hours in a single week. There are certain exemptions that free employers from these obligations - for example, if workers fulfill specific job duties and are paid on a salary basis of no less than $455 per week, they may not need to receive premium rates for additional work time.

However, issuing wages on a salary basis is not enough to secure that exemption. The DOL case claims PCM Construction was paying its workers on an fixed basis without considering their actual time and attendance totals, and failed to compensate them for additional work time. As a result, the DOL asked the employer to pay 195 employees $72,143 in back wages to recover the lost pay.

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.