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IFCO
Systems North America Inc., doing business as IFCO Systems, based in
Houston has paid $1,602,267 in back wages to its employees after
investigations by the U.S. Department of Labor's Wage and Hour Division
found that 1,751 employees in 17 states had not been properly paid for
the overtime hours that they worked as required by the Fair Labor
Standards Act (FLSA). The Wage and Hour Division also fined the company
$963,050 in civil money penalties.
"The Department of Labor is a
voice for working families, and I am committed to ensuring that
employers comply with federal labor laws so workers can have confidence
they will receive the compensation they've earned and deserve," said
Labor Secretary Hilda L. Solis.
Wage and Hour Division
investigators found that IFCO Systems, which manufactures and repairs
reusable plastic containers and wooden pallets, did not pay its
employees time and one-half for hours worked over 40 in a workweek. The
company also did not maintain the records that they are required to
keep under the law.
The investigations took place in the states
of Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana,
Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Ohio,
Oklahoma, Oregon, Tennessee, Texas and Utah.
Back wages and
civil money penalties have been paid in full, and the company has
agreed to injunctive relief enjoining them from further violations of
the FLSA.
A separate 2002 Wage and Hour Division investigation
of the same company by the division's Atlanta, Ga., district office
found violations of the FLSA resulting in $30,538 in overtime back
wages paid to 67 employees.
The FLSA requires that covered
employees be paid at least the federal minimum wage of $6.55 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. The minimum wage will increase to $7.25 per hour
effective July 24, 2009. Under the law, employers must also maintain
accurate time and payroll records.
For more information about
the FLSA and other federal wage laws, call the Department of Labor's
toll-free helpline at 866-4US-WAGE (487-9243) or the Wage and Hour
Division's District Office in Houston at 713-339-5500. Information is
also available on the Internet at www.wagehour.dol.gov
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