Guam construction contractor pays $367K in overtime back wages, damages to 158 employees after US Labor Department investigation

Employer: Guadencio C. Gozum, doing business as G.C. Gozum Construction

Site: 164 Torres St., Mong Mong, Guam 96910

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found that G.C. Gozum Construction paid employees straight time rates for overtime hours worked, in violation of the Fair Labor Standards Act. The employer also failed to record and pay employees for any time worked before or after their scheduled shifts.  

Resolution: G.C. Gozum Construction admitted to the violations found. The employer has paid $183,683 in overtime back wages and an equal, additional amount in damages to 158 employees.   

Quote: “Paying overtime when employees work more than 40 hours in a week is not a choice, it is a legal obligation,” said Terence Trotter, director of the Wage and Hour Division’s district office in Honolulu. “Just as there are building standards for the construction of residential and commercial structures, there are also baseline pay standards for the workers who provide those services. The back wages and damages paid in this case should send a strong message to other contractors shorting their employees. The Wage and Hour Division is committed to making sure that workers are paid every penny they have rightfully earned.”

Information: The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage for Guam of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records, and are prohibited from retaliating against workers who exercise their rights under the law.

For more information about federal wage laws administered by the Wage and Hour Division, or to file a complaint, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243).  All services are free and confidential.  Information also is available at http://www.dol.gov/whd/.