U.S. Department of Labor Investigation Results in Arizona Painting Company Paying Employees $242,618 to Resolve Overtime Violations

FLAGSTAFF, AZ – Major League Painting Inc. will pay $242,618 in back wages and liquidated damages to 70 employees for violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA) following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD).

WHD investigators found that the Flagstaff commercial and residential painting contractor violated the FLSA’s overtime requirements when it paid straight time for its employees’ overtime hours instead of the time-and-one-half required by law. Investigators found that the employer falsely showed the straight time payment as a “bonus” in the payroll records. The company’s failure to maintain accurate payroll records also resulted in recordkeeping violations.

“The resolution of this case demonstrates the U.S. Department of Labor’s commitment to ensure that employees receive the wages they rightfully earn,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “No employer that fails to comply with the law should gain a competitive advantage over those that play by the rules. We urge employers to call the Department of Labor for assistance and to use the tools the Department offers to explain their obligations and avoid violations.”

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.