A recent case demonstrates that violations of the Fair Labor Standards Act can bear more serious results than being required to compensate employees for back wages and overtime pay.
In October 2013, the Department of Labor's Wage and Hour Division issued a release stating a Belton, Texas-based wire rope manufacturer was found to be accountable for multiple violations of FLSA, including failing to pay employees time and a half for hours worked in excess of 40.
The owner, plant manager and office manager were convicted on separate felony counts after two DOL investigations determined repeat and willful FLSA violations. During an investigation that took place between December 2010 and March 2013, the employers submitted false payment records to the department and required kickbacks from workers.
The employers were ordered to pay $165,356 in overtime back pay and damages to 31 workers, fined $12,100 in civil penalties and required to pay an additional court-ordered fine of $10,000. The supervisors also served jail time, according to Fisher and Phillips LLP.
FLSA includes a provision that authorizes criminal prosecutions in the event that an employer has proved beyond a reasonable doubt to have willfully and knowingly violated the act. The penalties include a fine of up to $10,000, a prison sentence of up to 6 months, or both a fine and imprisonment.
To avoid lawsuits and criminal convictions, it is necessary to keep proper records of employee hours using time and attendance software.
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