labor lawAdivision of labor law center

A special US Dept. of Labor taskforce on minimum wage violations in the wake of Hurricane Katrina has had unexpected results in Ohio.

The firm violated the Ohio overtime and federal minimum wage laws, according to the U.S. Department of Labor, which conducted the investigation. The probe began after a tip from an employee led to the discovery that the firm was violating the minimum wage law in 16 states. It was also violating the FLSA, or federal Fair Labor Standards Act.

A Houston, Texas tree-trimming firm involved in the Hurricane Katrina cleanup failed to pay the minimum wage to its workers, and has been ordered to pay back-wages to more than 2,500 employees.

The violation of the federal and Ohio overtime law will cost the company more than $1.8 million. That’s the amount of back wages it has been ordered to pay, following the investigation by the Department of Labor.

The company must pay back wages to its Ohio employees, plus workers from Maryland, Virginia, Maine, New York, New Jersey, Texas, South Carolina, North Carolina, Georgia, Arkansas, Florida, Tennessee, Mississippi, and Louisiana. The firm cleans up around power lines and after natural disasters, such as hurricanes.

Employees, according to FLSA rules, must be paid the minimum wage of $5.15 per hour for the first 40 hours, then time-and-a-half for overtime after that. Employers must also keep time and payroll records that are accurate.

The investigation in this case began when Labor Department officials received a tip from an employee. They discovered the company had violated the minimum wage law in 16 states, as well as the Fair Labor Standards Act.

 “We are pleased,” said Labor Secretary Elaine L. Chao, “that we were able to help these workers get the back pay they deserve.” She said the department would continue its push “to ensure that employers are paying workers properly.”

The investigation resulting in the charges against ABC Professional Tree Services covered the period from August of 2004 to August of 2006. 

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