Warehouse Service Provider to Pay Overtime Back Wages for Overtime Pay Violations

Friday, August 29, 2014
FLSA Training needed in this case. Go to http://www.hrclassroom.com/content/FLSA-supervisor-training.aspx to learn how to protect your company.

Costa Solutions LLC, a warehouse service provider to the HEB grocery chain, has agreed to pay $146,459 in overtime back wages to 63 current and former employees after an investigation by the U.S. Department of Labor's Wage and Hour Division.
The investigation, conducted by the division's San Antonio District Office, found that Costa Solutions violated the overtime provisions of the Fair Labor Standards Act by failing to pay overtime to a group of hourly supervisors and assistant supervisors, many of whom worked well beyond 40 hours in a workweek. The company also failed to include all earnings when calculating employees' overtime rates.

Costa Solutions agreed to comply with all applicable FLSA provisions by correctly calculating and paying overtime for all non-exempt employees and ensuring that all legal requirements are met before considering employees exempt from overtime.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour. Workers who are not employed in agriculture and not otherwise exempt from overtime compensation are entitled to time and one-half their regular rates of pay for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and it prohibits employers from retaliating against employees who exercise their rights under the law.
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