$134,000 in Back Pay for Overtime and Record-Keeping Violations

Thursday, December 10, 2015

Investigators from the department's Wage and Hour Division's Mobile District Office found that NSC Technologies Inc. violated the overtime provisions of the Fair Labor Standards Act. Specifically, the employer illegally labeled a portion of workers' regular wages as per diem payments in order to exclude these wages when calculating overtime premiums. This improper pay practice also resulted in record-keeping violations because the employer failed to maintain accurate records of employees' wages and actual hours worked, as required by the FLSA. Legitimate per diem payments are compensation for living expenses incurred on behalf of the employer, such as transportation, meals, and lodging. NSC Technologies Inc. has agreed to comply with the FLSA and to pay 218 employees back wages totaling nearly $134,000.

The FLSA requires that covered, non-exempt 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 must maintain accurate time and payroll records, and are prohibited from retaliating against workers who exercise their rights under the law.

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