labor lawAdivision of labor law center

Like many states that tie their minimum wage to the federal minimum wage, the Texas minimum wage rose to $6.55 per hour on July 24, 2008. This increase is directly related to the increase in the federal minimum wage as set forth in the Fair Minimum Wage Act of 2007. This act introduced a series of three increases, each of 70 cents over three years. The third and last increase will occur on July 24, 2009.

The Texas state minimum wage law is tied to the federal minimum. In fact, according to the US Department of Labor, the Texas law doesn’t even mention a dollar amount. Instead, it references the federal minimum wage amount and adopts that wage as its own.

In Texas, employers covered by the primary federal minimum wage statute, the FLSA or Fair Labor Standards Act, are exempt from the Texas state minimum. Companies included under FLSA are those which earn $500,000 or more annually, or which engage in interstate commerce.

The Texas Workforce Commission provides the business publication Texas Business Today. A recent issue of this publication states that in the age of the Internet, it’s nearly impossible for a company not to conduct business across states. Any company that uses the Internet, accepts credit cards or corresponds via email is engaged in interstate commerce, thereby qualifying it as an employer under FLSA.

Texas Payday Law requires employers to pay salaried workers at least twice per month. Other employees must also be paid at least twice a month, and at regular intervals. Employers are also required to display labor law posters informing workers what day they will be paid, and how often.

No overtime law exists on the Texas law books. Employers are required to follow the federal standard of 1.5 times the usual hourly rate for all time over 40 hours worked in one week.

 On July 24, 2008 the Texas minimum wage increased by 70 cents from $5.85 to $6.55 per hour when the federal minimum wage changes.

Under Chapter 62 of the Texas Labor Code, known as the Texas Minimum Wage Act, the state minimum wage mirrors the federal minimum wage.  On May 24, 2007 President Bush signed the Fair Minimum Wage Act of 2007 into law. That federal act provided for annual 70-cent increases in the minimum wage. The current increase is the second of three under the law. The federal (and Texas) minimum wage will increase again on July 24, 2009.

According to the Texas Workforce Commission or TWC, Chapter 62 also requires employers (more…)

The Texas minimum wage will increase from $5.85 to $6.55 per hour on July 24, 2008. This 70-cent increase mirrors the increase in the federal minimum wage under the Fair Minimum Wage Act of 1007 on the same day. Under that bill, the federal minimum wage is scheduled to increase a total of 3 times between 2007 and 2009. Each increase is 70 cents. This brings the federal minimum wage from $5.15 per hour to $7.25 per hour.

According to the US Department of Labor, the Texas minimum wage (more…)

When an employer enters into an agreement with attorneys of the U.S. Department of Labor (DOL), it’s probably better to honor that agreement. A Houston grocer faces $268,812 in penalties after allegedly welching on a deal with the U.S. Department of Labor.

A suit filed in the U.S. District Court for the Southern District of Texas alleges that employees at 4 grocery stores owned by Hai Du Duong and his wife, Ha Duong, were not paid the minimum wage. The employees also did not receive overtime pay when they worked more than 40 hours per week. Manager Tommy Vo is also named in the suit, as is the Hong Kong Group.

Initially, an employee filed a complaint with the U.S. Department of Labor’s Wage and Hour Division. After an investigation, the department found that the company had not paid the appropriate minimum wage, and overtime wages between October 2002 and October 2004.

At that time, the Duongs agreed to pay 119 employees more than $161,500 in back wages, and to comply with the minimum wage and overtime laws in the future. According to the DOL, the Duongs did pay the back wages to employees. However, the Duongs demanded that the employees return the money to them. 

As a result, the Department of Labor launched another investigation and discovered that the company owes more than $2 million in back wages from March 2003 to October 2006. The DOL also assessed a penalty of $268,812 for “willful” violations, based on the company’s past performance.

“The Department of Labor is committed to enforcing the law to ensure that employees receive the wages to which they are legally entitled,” said Wage and Hour Division Administrator Paul DeCamp. “In this case, the department recovered more than $2 million dollars in overtime back wages for workers employed by Hong Kong Group.”

Under the Fair Labor Standards Act of 1938, employees must be paid at least the federal minimum wage for all hours worked. Employees who work more than 40 hours per week are entitled to 1.5 times their usual hourly rate. The current minimum wage is $5.85 per hour. Until July 24, 2007, the federal minimum wage had remained at $5.15 per hour for more than a decade.

By state law, the Texas minimum wage is the same as the federal rate.

The Duongs, Mr. Vo and the Hong Kong Group deny any wrongdoing.

This is just the most recent in a series of minimum wage violations uncovered by the U.S. Department of Labor’s Wage and Hour Division.

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.

The U.S. Department of Labor (DOL) recently filed suit against Pilgrim’s Pride Corp. in Dallas to recover about $3 million in back wages for more than 500 workers engaged in poultry processing. The complaint was filed with the Northern District of Texas, Dallas Division.

Pilgrim’s Pride Corp. is the largest chicken processing company in the nation, operating 34 plants through out the country. The company acquired Gold Kist in late 2006, and now has consolidated annual net sales of $7.4 billion.

“Ensuring that low-wage workers are paid all the wages they have rightfully earned is a top priority of the Wage and Hour Division,” said Paul DeCamp, the agency’s administrator. “This legal action involves more than $3 million in back wages for more than 500 employees, and is intended to ensure that the company complies with federal overtime and recordkeeping laws in the future.”

The DOL’s Wage and Hour Division launched the investigation after receiving a complaint. The suit alleges that Pilgrim’s Pride failed to pay overtime to employees since August 6, 2005.

Most of the overtime violations resulted because the company failed to pay the employees for time spent donning and removing protective clothing required for their jobs. During the investigation, despite prodding from the DOL, Pilgrim’s Pride made no attempt to comply with the recordkeeping and overtime provisions of the FLSA.

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.

This is just the most recent in a wave of minimum wage violations since the federal rate was increased on July 24, 2007 to $5.85 per hour.

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.