labor lawAdivision of labor law center

The U.S. Department of Labor (US DOL) recently reported record wage recovery in 2007. Since 2000, the US DOL has recovered more than $1.25 billion in back wages for nearly 2 million workers.

During 2007, wages totaling $220,613,703 were collected on behalf of 341,624 employees. That is the highest dollar amount ever, and the second-highest number of workers helped.

“We’re proud to be ensuring that workers are paid the wages they’re due,” said Paul DeCamp, administrator for the Wage and Hour Division. “This record-breaking performance demonstrates the department’s commitment to protecting workers.”

The Wage and Hour division warns that the focus in 2008, as in 2007, is on very large employers. Several large employers have maid multi-million dollar payments. Two cases involved more than 20,000 employees each, including the largest private-sector settlement in history.

A number of high-profile cases contributed to the 2007 totals. In September, two companies agreed to pay nearly $1 million in unpaid overtime to 382 workers employed in the wake of Hurricane Katrina. The workers were employed by L&R Security Inc. of New Orleans and HKA Enterprises Inc. of Duncan, South Carolina as subcontractors for CH2M Hill of Englewood, Colorado under a FEMA contract. Employees worked as security guards at FEMA trailer sites and in debris removal, but were not paid overtime in accordance with federal law.

In August, five jointly-operated restaurants in Long Island, New York were ordered to pay almost $1 million to 191 low-wage workers. The employees had been forced to work long hours for wages less than the minimum wage, without overtime pay.  The court ordered that if the employers did not pay up, their restaurants could be sold and the proceeds used to pay the employees.

In late July, the U.S. Department of Labor forced Desert Plastering, Inc., a Las Vegas Nevada firm, to pay nearly $1.2 million in back pay to 1060 employees. The feds found that Desert Plastering had not paid required overtime to lathers, finishers, plasterers and estimators who worked up to 58 hours per week.

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.

Earlier this year, under a voluntary agreement to prevent a federal suit, Wal-Mart, Inc. agreed to pay $33 million in unpaid overtime wages to 86,680 employees throughout the nation. An internal audit revealed that the company had incorrectly classified some employees as “salary-exempt” when in fact they were entitled to overtime pay. In other cases, the company admitted that it had based overtime pay on the employee’s base hourly rate, not including incentives and bonuses in the employee’s average rate as required by law.

The Fair Labor Standard Act requires that most U.S. employees be paid at least the federal minimum wage, which is currently $5.85 per hour. The FLSA also mandates that employees must be paid 1.5 times their usual hourly rate for each hour over 40 in a single work week.

Many employers mistakenly believe that any worker paid by salary is exempt from overtime. The FLSA does provide a number of exemptions to the overtime law for bona fide executive, administrative, professional and outside sales jobs. In general, employees must meet job duty and salary tests, to be exempt from overtime.

The U. S. Department of Labor Wage and Hour Division collected more than $171 in back wages for some 246,000 employees in 2006. Thos wages were a result of 31,987 “compliance actions” in 2006.

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