Portland grocery store to pay more than $99,000 in overtime back wages, damages to 11 workers

Employer: Tienda y Carniceria La Tapatia Inc., doing business as Supermercado Tapatia

Sites: 18330 SE Stark St., Portland, Oregon

Investigation findings: The employer incorrectly categorized a number of employees as exempt from overtime and failed to pay these employees additional half time for hours worked beyond 40 in a work week. Instead, La Tapatia paid a flat salary for all their hours regardless of how many hours they worked, in violation of the Fair Labor Standards Act.

Resolution: Investigators from the Wage and Hour Division's Portland District Office established that 11 employees were owed $49,600 in unpaid overtime wages and an additional $49,600 in damages. La Tapatia has agreed to pay all the back wages due and the assessed damages.

Quote: "Employers are responsible to know and apply the laws and regulations that govern their businesses. Categorizing salaried employees as exempt from overtime, without considering all of the requirements necessary for the exemption, is a common problem and business owners need to do their homework before making such decisions," said Thomas L. Silva, the division's district director in Portland. "Employers who disregard the overtime requirement not only violate a basic labor law but in doing so also place law-abiding competitors at a financial disadvantage."

Information: The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. Exempt employees generally must meet certain tests regarding their job duties and must be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the department's regulations. For more information, visit http://www.dol.gov/whd/regs/compliance/fairpay/fs17a_overview.htm. For more information about federal wage laws administered by the Wage and Hour Division, call the agency's toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.

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