Realty Center Property Management and Realty Lincoln, two businesses operating out of Lincoln, Nebraska, recently received a default judgment to pay 14 employees $29,284 in back wages after owner Gary T. Thompson failed to appear in court. A previous investigation by the Department of Labor's Wage and Hour Division revealed the employer was not properly paying employees for their time and attendance.

Specifically, employees were cheated out of overtime pay for hours worked past 40. The Fair Labor Standards Act (FLSA) mandates that companies pay time-and-a-half rates for those extra hours, but the businesses forged illegal agreements with non-exempt employees to replace overtime with sick days or time off. The FLSA does not uphold collectively bargaining agreements that dissolve employees' rights to basic labor benefits, such as minimum wage and overtime pay.

Additionally, the employer tampered with work records to make it appear as though employees were being paid properly. To remain in compliance with the FLSA, businesses must keep accurate records of employee attendance that include information regarding workers' wages, schedules and conditions of employment.

Employers can use a payroll processing system to maintain better records, which can resolve problems should an investigation arise. 

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