What could you do with $112,435? There’s a small business in Tampa, FL that “gets” to write a check for that amount for non compliance with the Fair Labor Standards Act. This week, the Department of Labor ruled that Universal Fire Systems violated overtime and record keeping provisions, resulting in penalties totaling $112,435 in back wages for 92 workers. Not only did they fail to pay overtime, they also failed to maintain required time and payroll records. James Schmidt, the Wage and Hour Division’s district director in Tampa said the following:
“Simply paying employees a salary does not in itself mean they are not entitled to overtime. Overtime does not need to be approved by the employer in advance to be enforceable. If employees perform work, those hours must be recorded and paid for. We will continue our vigilant enforcement to ensure that workers like those in this case bring home every penny they have rightfully earned.”
Are you confident that your business has the right policies and procedures in place to avoid a similar determination by the Department of Labor?