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October 07, 2013
WHD: Employees received piece rate without overtime

Orlando-based C&B Electrical Contractors of Florida, Inc., has agreed to pay $124,638 in back wages to 59 workers who were denied overtime in violation of the Fair Labor Standards Act (FLSA), the U.S. Department of Labor’s Wage and Hour Division (WHD) recently reported.

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WHD investigators determined that C&B paid employees a piece rate and failed to ensure that they received overtime pay for hours worked over 40. The company also failed to maintain accurate records of hours worked and payments made to employees.

“Employers are legally obligated to maintain accurate records and to pay employees for all hours worked, including proper overtime compensation when hours exceed 40 in a workweek,” said Michael Young, director of WHD’s Jacksonville District Office. “Employers should take this investigation as an opportunity to evaluate their own payroll practices and ensure they are paying their employees in compliance with the law.

“All employees deserve to be paid all the wages to which they are legally entitled. Our vigorous enforcement of these laws also helps to ensure a level playing field for all employers.”

In addition to paying back wages, C&B agreed to bring its pay practices into compliance with the FLSA. The company has decided to simplify its pay practices by setting an hourly rate for all employees, the WHD said.

Under the FLSA, covered employees must be paid minimum wage plus time and one-half their regular rates, including commissions, bonuses, and incentive pay, for hours worked beyond 40 per workweek. Paying a salary, piece rate, or day rate does not exempt workers from overtime protections.

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