New Jersey Mattress Refurbishment Company to Pay $292,998 in Back Wages and Liquidated Damages to Workers for Overtime Violations

Wednesday, December 28, 2016

A Passaic, New Jersey mattress refurbishment company will pay $292,998 in back wages and liquidated damages to its workers after the company entered into a consent judgment with the U.S. Department of Labor.

The agreement resolves the department’s Wage and Hour Division investigation of Citi Mattress Inc., which found the company violated the Fair Labor Standards Act by not paying the workers the proper overtime pay when they worked in excess of 40 hours in a workweek.

In addition to paying the back wages and damages, the judgment requires the company to take the following measures to ensure future compliance with the FLSA:

  • Use a time clock or other automated timekeeping system.
  • Permanently display the poster “Employee Rights Under the Fair Labor Standards Act” in English and Spanish.
  • Provide information about the FLSA to current and new employees in English and Spanish.
  • Maintain proper time records for all employees.
  • Provide non-exempt employees with a statement reflecting the hours worked for each day in the workweek and total hours each workweek.

The FLSA requires that covered, nonexempt employees be paid at least the 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. Employers who violate the law are liable to employees for their back wages and an equal amount in liquidated damages. Both back wages and liquidated damages are paid directly to the affected employees.

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