labor lawAdivision of labor law center

A Department of Labor investigation recently found that a Houston company, ABC Professional Tree Services, had violated federal and Louisiana overtime laws. Due to these violations, the company now has to pay 2,501 employees overtime in the amount of $1.8 million.

The professional tree service specializes in clean-up following natural disasters. After a tip from a disgruntled employee, the Department of Labor began its investigation, which covered the time period from August, 2004 to August, 2006. During this investigation, the Department of Labor discovered that the company had violated minimum wage laws in several states, in addition to violating the federal Fair Labor Standards Act, also known as FLSA.

Elaine L. Chao, U.S. Secretary of Labor, explained, “We are pleased that we were able to help these workers get the back pay they deserve.” She added, “The department will continue our efforts to ensure that employers are paying workers properly.”

ABC Professional Tree Services cuts and trims trees and performs clean-up work near power lines for utility companies. It often does work following natural disasters, such as hurricanes. Some of the money owed to employees is for work they did following Hurricane Katrina.

Employees in the following states will receive back wages: Virginia, Louisiana, Arkansas, Louisiana, Georgia, New York, Ohio, New Jersey, North Carolina, Tennessee, Maryland, Maine, Florida, South Carolina, and Mississippi.

According to the Fair Labor Standards Act, workers cannot be paid less than $5.15 per hour, which is the minimum wage. This rate is paid for the first 40 hours of a work week. After that, employees should be paid overtime, which is time-and-one-half of their base hourly rate. In addition, employers are required by law to have accurate payroll and time records.

Along with U.S. Attorneys from several states, the U.S. Department of Labor has formed a task force that works to uncover and then prosecute employers in the Gulf Coast area of the country who violate federal labor laws. Specifically, this task force looks at areas impacted by hurricanes, including those areas hit by Hurricane Katrina and Hurricane Rita.

 

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1. Posted by: Texas Company Pays $1.8 Million in Back Wages - Labor Law Center Blog

   [...] A total of 107 subcontractors of KBR, Inc. based in Virginia, were required by the Labor Department to pay roughly $1.5 million in back pay and benefits. The case applied to as many as 2,600 workers who were involved in Hurricane Katrina recovery. They were construction workers assigned to repairs at the Naval construction Battalion Center in Gulfport, Mississippi, and the Naval Air Station/Joint Reserve Base in Belle Chasse, Louisiana. [...]

2. Posted by: 2008 Minnesota Labor Law Posters - Labor Law Center Blog

   [...] In early July, the U.S. Department of Labor forced 107 subcontractors of KBR, Inc. of Virginia to pay some $1.5 million in back wages and benefits for up to 2,600 workers who participated in the Hurricane Katrina recovery project. The construction workers were involved in repairs to the Naval Construction Battalion Center in Gulfport Mississippi or the Naval Air Station/Joint Reserve Base in Belle Chasse, Louisiana. The U.S. Department of Labor is still searching for some of the workers involved in that case. Anyone who believes that they are owed back wages for these projects can contact the nearest U.S. Department of Labor office. The average payment per worker in that case was $616. [...]