Florida plastic recycler pays $424K in back wages to 195 employees after US Labor Department investigation finds FLSA violations

Employer name: Ravago Americas LLC

Investigation site: 1900 Summit Blvd., #900
Orlando, Florida 32810

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division, Jacksonville District Office, found the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act.

The employer paid workers fixed salaries, based upon a 40 hour workweek, without regard to how many hours they actually worked. When employees performed work before their shifts, after their shifts, during their meal breaks, and/or at home, those hours were neither recorded nor paid for. This practice created an overtime violation when the unpaid time pushed workers’ totals beyond 40 hours in a workweek, and no overtime premium was paid. The company also failed to maintain required time and payroll records.

Resolution: Ravago has signed an agreement with the division to:

• Pay $424,537 in back wages to 195 employees and comply with the FLSA.
• Install an accurate time-keeping system to capture daily start and end times of employees.
• Include an accurate record of hours worked on pay stubs for all nonexempt personnel.
• Perform enterprise-wide training with all managers and employees on proper clock in/out procedures on installed time-keeping system, employee rights regarding compensable and non-compensable time and proper procedures to correct inaccurate payroll caused by a time-keeping error.

Quote: “Simply paying an employee a salary does not necessarily mean the employee is not entitled to overtime,” said Daniel White, the Wage and Hour Division’s district director in Jacksonville. “Restoring these wages, and getting this company to pay in compliance with the law going forward, will make a meaningful difference in the quality of life for these workers and their families. Other businesses, who may be paying in the same manner, should take note. Workers who are being paid straight time for overtime should give us a call.”

Background: Based in Orlando, Ravago Americas is a plastic recycling compounding and distribution company.

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. 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. The department recently issued a Final Rule that will update that salary level to $913 per week as of Dec. 1, 2016.

For more information about the FLSA and wage laws or to file a complaint, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243); the Jacksonville District Office at 904-359-9292 or visit http://www.dol.gov/whd /.