Phoenix construction company to pay workers $52K in back wages

Employer: Andale Construction Inc.

Site: 3410 West Adams Street, Phoenix, Arizona 85009

Investigation findings: Andale Construction, an industrial and commercial underground utilities contractor, failed to pay legally required overtime to working foremen who were paid flat salaries without regard to the number of hours they worked, and were improperly categorized as exempt from overtime. These employees routinely worked between 50-55 hours per week, yet the employer failed to keep an accurate record of hours worked and failed to pay them overtime for hours worked beyond 40 per week, as required by the Fair Labor Standards Act.

Resolution: The firm agreed to pay $52,735 to eight employees who had been paid in violation of the overtime provisions of the FLSA.

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. To qualify for exemption, employees generally must meet certain tests regarding their job duties and 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.

Quote: "This employer made a very common mistake in the construction industry and did not pay overtime to working foremen who were paid a salary regardless of the hours they worked. Simply paying someone a salary does not necessarily mean that they're not due overtime," said Eric Murray, director of the Wage and Hour District Office in Phoenix. "We are pleased that the company stepped up to the plate upon learning of the violations and took immediate steps to correct the problem."

Information: 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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