Florida Record

Sunday, December 15, 2019

DEPARTMENT OF LABOR: U.S. Department of Labor Investigation Results in South Florida Servpro Franchisee Paying $201,508 in Back Wages

By Press release submission | Nov 26, 2019

Law money 12

U.S. Department of Labor issued the following announcement on Nov. 22.

After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Restoration Management 2013 Inc. – operating as ServPro in Boynton Beach, Florida – has paid $201,508 in back wages to 141 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the restoration and remediation company violated FLSA overtime requirements when the employer paid employees straight-time rates, in cash, for all the hours that they worked. This practice resulted in violations when employees worked more than 40 hours in a workweek, but the employer failed to pay overtime. Additional violations occurred when the employer automatically deducted time from some employees’ timecards for meal breaks, even when they worked through their breaks. The employer also failed to maintain accurate payroll records and failed to display an FLSA poster, both violations of FLSA recordkeeping requirements.

“Employers are required to pay their employees the wages they have legally earned for all the hours that they work,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “Our work continues to ensure that employees are paid as the law requires, and that employers compete on a level playing field. We encourage all employers to review their pay practices and their legal obligations and to contact the Wage and Hour Division for compliance assistance.”

Original source can be found here.

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U.S. Department of Labor