Money-Transfer Business to Pay $76,050 in Back Wages and Penalties for FLSA Violations

Monday, March 2, 2015

The employers and owners of America Transfers Inc. and Mexico Transfers Inc., Silvia Miranda and Jose Zamudio,willfully and repeatedly underpaid their employees.

Miranda and Zamudio willfully violated the Fair Labor Standards Act by taking cash-register shortages from workers' paychecks and misrepresenting deductions made to pay insurance or garnishments. These illegal, repeated deductions forced the employees' pay below the minimum wage of $7.25 per hour. As a result of the investigation, the companies must pay 111 employees more than $15,000 in minimum wage back wages and $61,050 in civil penalties for the FLSA violations. 

A 2009 Wage and Hour Division investigation of the joint enterprise owned by Miranda and Zamudio found they did not pay for hours worked off the clock and made employees pay for cash shortages. As a result of that investigation, the employers paid $1,344 in minimum and overtime back wages to three workers and were also fined $660 in civil money penalties.

America Transfers Inc. has 57 locations, which operate in Texas, Arizona and Illinois; Mexico Transfers has 33 locations in Arkansas, Georgia, Kansas, Missouri, New Jersey, North Carolina, Oklahoma, Oregon and Washington. Miranda and Zamudio own the enterprise.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 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 must maintain accurate time and payroll records. The FLSA provides that employers who violate the law are liable to employees for their back wages and an equal amount in liquidated damages.

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