Detroit Security Company Agrees to Pay $67,068 to 25 Employees After U.S. Department of Labor Finds Overtime Violations

DETROIT, MI – The U.S. Department of Labor and a Detroit security company have reached an agreement to resolve overtime violations of the Fair Labor Standards Act (FLSA), including payment of $33,534 in back wages and an equal amount in liquidated damages – totaling $67,068– owed to 25 security guards.

The Department’s Wage and Hour Division found Eagle Security Services failed to comply with the FLSA’s overtime and recording-keeping provisions.

An investigation determined that Eagle Security Services created a separate company, Eagle Security Solutions, from which to pay employees for any hours they worked beyond 40 per week.  That company issued separate checks for the overtime hours, at straight time rates, rather than paying for the overtime hours at time-and-one-half as the law requires.

“Creating a separate company to avoid paying overtime violates the law and is an attempt by the employer to gain an unfair advantage over competitors who play by the rules,” said Wage and Hour Division District Director Timolin Mitchell, in Detroit. “We encourage companies to reach out to us for guidance.”

Under terms of the agreement, Eagle Security Services will implement a training program for current and new managers regarding FLSA compliance, and conduct quarterly reviews of payroll and time records, in addition to paying the back wages and liquidated damages. 

Workers and employers with questions about the FLSA and all of the federal wage laws administered by the Division should call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information is available online at http://www.dol.gov/whd/.