A cleaning company in Houston, Texas has agreed to pay more than $273,000 in minimum wage and overtime back payments to 266 employees. Following an investigation, the Department of Labor found workers were not being paid overtime for hours worked in excess of 40.
After the investigation, the department also discovered one employee had been paid below the federal minimum wage of $7.25 per hour. Other janitorial workers worked an average of 65 hours per week without receiving overtime pay at a rate of time and one-half. In addition, the DOL found the company had failed to maintain accurate time and wage records required by the Fair Labor Standards Act.
According to regional Wage and Hour Division administrator Cynthia Watson, the cleaning company deliberately took advantage of workers for its own financial gain. In an interview with local paper The Pasadena Citizen, Watson said this case should send a message to all employers who have similarly violated FLSA to cut costs. She also warned businesses to learn about labor practices when contracting cleaning or other types of services.
One way to maintain compliance with FLSA is to use time and attendance software that keeps detailed records of employee time and wages.
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