Following a recent investigation by the U.S. Department of Labor's Wage and Hour Division, Central States Underwater was ordered to pay 38 employees $117,157 in back wages for unpaid overtime. The company was operating out of Crosby, Texas, doing business as CSU Gulf Coast Inland & Offshore Diving Services when the investigation was launched.
The employer specializes in underwater pipe inspection, maintenance and repair work in the Gulf Coast Region. Unfortunately, the Wage and Hour Division investigation revealed the business was not complying with the Fair Labor Standards Act (FLSA). Employees were paid overtime rates (time-and-a-half their regular wages) if they worked more than eight hours in a day, but not if their total employee attendance exceeded 40 hours in a pay period.
Moreover, the investigation revealed employees were not always paid for time spent traveling between a shop and work sites, or time attendance at the shop itself.
"All employees should be properly compensated for all hours worked, including an overtime premium for those hours over 40 in a week," said Cynthia Watson, regional administrator for the Southwest's Hour Division in the Southwest. "Employees worked as many as 70 hours in a week without overtime compensation. This practice is illegal and unacceptable."
Employers can ensure their workers are paid correctly when performing remote work by using a wireless timeclock that can be taken along to jobsites.
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