U.S. Department of Labor Investigation Results in Arkansas Staffing Company Paying $708,922 in Back Wages for Labor Law Violations Affecting Disaster Recovery Employees in Louisiana

LEACHVILLE, AR – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Arkansas staff sourcing company Wallace, Rush, Schmidt Inc. (WRS) has paid $708,922 to settle overtime, minimum wage, and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators found WRS failed to maintain complete and accurate records, which led to the Leachville-based employer’s failure to pay 1,393 employees hired to assist with cleanup after prolonged rains caused flooding in Baton Rouge and other Louisiana worksites in 2016. Investigators determined that limited access to technology likely contributed to a delay in site supervisors’ ability to submit employee timesheets that left many workers unpaid for weeks. 

“Companies have an obligation to pay workers correctly and to do so on time,” said Betty Campbell, Wage and Hour Division Administrator. “The U.S. Department of Labor is committed to ensuring that employers have the tools they need to comply with the law. We offer multiple resources, including materials specific to payroll obligations during disaster recovery.  Employers are encouraged to reach out to us for assistance, or to attend any of our many educational outreach events.”

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 https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.