GTM Sportswear, a company that creates custom apparel with screen printing, embroidering and other embellishments, was recently investigated by the Department of Labor's Wage and Hour Division and has been ordered to pay 133 affected employees $97,000 in back wages.

According to the investigation, the employer was allegedly misclassifying its workers as exempt when their inside sales positions did not meet the specific criteria outlined in the Fair Labor Standards Act (FLSA). Instead, employees were paid set salaries every week without considering their actual employee attendance totals.

"One of the most common violations in the sales industry is improperly classifying workers as being exempt from overtime," said Patricia Preston, WHD district director in Kansas City, Missouri. "The criteria for exemption from overtime are very specific to ensure workers are properly compensated for all hours worked. Simply paying someone a salary does not automatically make them exempt."

The employer was also cited for recordkeeping violations because it did not maintain accurate accounts of staff members' work totals. Although it can be difficult to navigate the intricacies of the FLSA, it's easy for companies to adhere to recordkeeping requirements. Using a timeclock, employers can generate specific reports for employees or investigators. 

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