$244,905 in Back Wages and Damages for Overtime and Recordkeeping Violations

Tuesday, October 21, 2014

Avila's Tile and Cabinets of North J Street in Tulare is paying $244,905 in back wages and liquidated damages to 31 of its employees following an investigation by the U.S. Department of Labor's Wage and Hour Division. The investigation found that the employer failed to pay time-and-a-half for overtime hours, paid for such hours as straight time in cash and with no payment records, and failed to keep a record of overtime hours worked. 

The owners of Avila's signed an enhanced settlement agreement with the Wage and Hour Division, agreeing to install time clocks in each location. They also agreed that they will prepare a statement of hours worked for each employee for each day, week and pay period, and give the employees an opportunity to make any corrections. Each work hours summary will contain a statement in English and Spanish advising employees of their rights under the Fair Labor Standards Act and will include contact information for the department. Avila's will also pay penalties to the federal government. 

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour, as well as one and one-half times their regular rates 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.

The FLSA provides that employers who violate the law are generally liable to employees for their back wages and an equal amount in liquidated damages, which are paid directly to the affected employees.

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