$83,000 in Back Overtime Wages for Credit Union Employees

Thursday, August 11, 2011

American Airlines Federal Credit Union in Fort Worth, Texas, has agreed to pay $83,608 in overtime back wages to 295 current and former tellers, loan officers and customer service representatives, following an investigation by the U.S. Department of Labor’s Wage and Hour Division that found violations of the Fair Labor Standards Act’s overtime and record-keeping provisions.

“This company profited from employees working overtime without paying proper wages,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “According to labor standards, work hours should be counted, recorded and paid for fairly. A nonexempt employee who works more than 40 hours a week is due overtime wages for those hours at a rate of time and one-half his or her regular pay.”

The investigation, conducted by the Wage and Hour Division’s Dallas District Office, found that the credit union improperly classified its salaried employees as exempt from the FLSA’s overtime provisions and paid them “straight-time” wages, rather than time and one-half as required by the FLSA. Additionally, the credit union failed to maintain accurate time and payroll records of employees’ work hours and wages.

The credit union, a cooperative financial institution which provides banking and other financial services to employees and their families, has agreed to properly classify and compensate employees for all hours worked in compliance with the FLSA.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records.

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