Federal judge orders security provider to pay more than $115K in back wages, damages to guards protecting Hawaii movie and television locations

Employer: C&C Security Inc., doing business as Cast and Crew Security

Site: 438 Hobron Lane #117, Honolulu, HI 96815

Investigation findings: Investigators from U.S. Department of Labor’s Wage and Hour Division found that C&C Security failed to pay security guards for television and film productions such as “Predator,” “Soul Surfer,” “Hawaii Five-0” and “The Descendants” legally required overtime in violation of the Fair Labor Standards Act. Specifically, the firm did not pay their guards time-and-a-half their regular rates of pay for all of their hours worked in excess of 40 in a workweek. The employer also paid a number of guards on a salary basis and incorrectly considered them “exempt” from overtime requirements.

Resolution: Under the terms of a consent judgment filed with the U.S. District Court for the District of Hawaii, C&C Security Inc., its president Richard A. Groder Jr., and manager Kelii C. Correa will pay $57,785 in unpaid overtime wages plus an additional and equal amount in liquidated damage, totaling  $115,570 to 65 employees.

Quote: “Violations are particularly troublesome in situations like this, where low wage workers are denied access to all of their lawfully entitled earnings which must cover the essential expenses of living in Hawaii,” said Terence Trotter, director of the division’s Honolulu District Office. “Just as there are standards for quality in the production of movies and television shows, there are also baseline wage standards for contracted workers who provide protective services at set locations.”

Information: Simply paying an employee a salary does not necessarily mean the employee is not eligible for overtime.  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.  On June 30, 2015, the Wage and Hour Division announced a Notice of Proposed Rulemaking to update the regulations defining which white collar workers are eligible to receive pay for hours worked over 40 in a workweek. For more information, please visit www.dol.gov/whd/overtime/NPRM2015.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour, as well as time and one-half their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law.  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), or the Honolulu office at 808-541-1361. Information also is available at http://www.dol.gov/whd.