$222,602 in Back Wages for Overtime Violations

Tuesday, April 17, 2012

Conway-based Klassmeyer Construction Co. Inc. has paid $222,602 in overtime back wages to 204 current and former construction workers following an investigation by the U.S. Department of Labor’s Wage and Hour Division that found violations of the Fair Labor Standards Act’s overtime provisions.

“The construction industry employs some of our nation’s most vulnerable workers,” said Cynthia Watson, regional administrator of the Wage and Hour Division in the Southwest. “The Department of Labor is committed to ensuring that all employers who are in violation of the FLSA are held accountable, and employees receive all the wages they have rightfully earned.”

An investigation by the Wage and Hour Division’s Little Rock District Office found that the company did not include employees’ bonus payments as part of their overall rates of pay when computing overtime. Under the provisions of the FLSA, an employer is not required to provide a bonus but if a nondiscretionary bonus is paid, that bonus must be included as part of the employee’s regular rate for computing overtime. Affected employees were located in Conway, Pangurn and Lincoln.

Klassmeyer Construction, a telecommunications construction company, has agreed to fully comply with the FLSA in the future. The back wages owed have been paid in full.

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 are required to maintain accurate time and payroll records.

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