DEPARTMENT OF LABOR: U.s. Department of Labor Investigation Results in Florida Warrantee Company Paying $89,866 in Back Wages to 138 Employees for Overtime Violations

By Press release submission | Feb 25, 2019

U.S. Department of Labor issued the following announcement on Feb. 20.

After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Advanced Marketing & Processing Inc. – a warrantee insurance company based in Clearwater, Florida – has paid $89,866 in back wages to 138 employees for violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

The employer, which does business as PMC, paid the back wages after WHD investigators determined PMC misapplied an exemption from the overtime requirements under the FLSA. This misapplication of the exemption led the employer to pay some overtime-eligible employees flat weekly salaries, without regard to the number of hours they had worked. This practice resulted in violations when these employees worked more than 40 hours per week and were not paid overtime. The employer also failed to maintain required records of the number of hours employees worked.

"Employers must understand their obligations and responsibilities under the law. Simply because a pay practice may appear to be common does not, in any way, mean that it complies with the law," said Wage and Hour Division District Director James Schmidt, in Tampa. "The U.S. Department of Labor encourages all employers to make use of the many tools we provide to help them understand and comply with the law, and to call us for assistance."

Original source can be found here.

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