$99,093 in Back Wages for Improper Calculation of Overtime Pay

Tuesday, October 18, 2011

Mid-Continental Restoration Co. Inc. has agreed to pay $99,093 in back wages to 47 employees at its Murfreesboro location after an investigation by the U.S. Department of Labor’s Wage and Hour Division found violations of the Fair Labor Standards Act.

“The Labor Department is committed to ensuring that all workers receive the pay they earn,” said Sandra Sanders, director of the Wage and Hour Division’s Nashville District Office. “According to labor standards, work hours should be counted, recorded and paid fairly. We will not allow employers to profit from not paying their employees properly.”

Although Mid-Continental Restoration Co. had a policy of paying for travel time at the applicable minimum wage rate, in practice management failed to record and pay employees for their hours while traveling to and from work sites during normal working times, which resulted in both minimum wage and overtime violations. Also, when calculating overtime pay rates, the company failed to include discretionary bonuses as part of employees’ regular rates.

In addition to paying back wages to the workers, the company has agreed to change its business practices so that all hours worked, including travel time, will be accurately recorded and paid at least at the applicable minimum wage, and overtime payments will be calculated according to FLSA provisions.

Mid-Continental Restoration Co. is headquartered in Fort Scott, Kan., and has additional offices in Indiana, Oklahoma, South Dakota, Tennessee and Texas. The contractor specializes in masonry and concrete restoration, and new masonry.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, as well as time and one-half their regular rates for hours worked over 40 per week. Additionally, the law requires that accurate records of employees’ wages, hours and other conditions of employment be maintained.

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