$107,476 in Back Wages to be Paid by Glass Company for Overtime and Record Keeping Violations

Friday, May 24, 2013

Kryger Glass Co. has agreed to pay 53 workers back wages of $107,476 following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found violations of the Fair Labor Standards Act’s overtime and record-keeping provisions when night delivery drivers were found to be improperly classified as exempt from overtime requirements.

The investigation determined that Kryger Glass Co. failed to pay nonexempt employees overtime compensation at time and one-half their regular rates of pay for hours worked beyond 40 in a week, as required by the FLSA. Instead, the company wrongly considered the night delivery drivers to be exempt from overtime requirements and paid them fixed salaries each week, without regard to the number of hours worked. Record-keeping violations were also cited during the investigation when the employer failed to maintain time records for the employees improperly classified as exempt.

Investigators found that $52,187 was due to 33 employees at the Omaha, Neb., location, and $55,289 was due to 20 employees at the Kansas City location. The Kansas City-based company operates retail auto glass repair shops and wholesales products to those retail stores and auto dealerships.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also are required to maintain accurate time and payroll records. Only drivers, their helpers, loaders who are responsible for proper loading, and mechanics working directly on motor vehicles that are to be used in transportation of passengers or property in interstate commerce can be exempt from the overtime provisions of the FLSA under the specific exemption claimed by this employer.

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