U.S. Department of Labor Recovers Overtime Wages Owed 629 Employees at Texas Company

LUBBOCK, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Llano Logistics Inc. – a distribution company based in Lubbock, Texas – has paid $244,208 in back wages and an equal amount in liquidated damages to 629 employees to settle violations of the Fair Labor Standards Act (FLSA) overtime and recordkeeping provisions.

WHD investigators found Llano Logistics Inc. - a subsidiary of United Supermarkets LLC - violated FLSA overtime requirements when it failed to pay hourly forklift operators and order selectors for work they performed before their shifts began. To meet production standards, employees arrived prior to the start of their shifts to inspect tools and forklifts, and sync radio headsets. Investigators found the company failed to record or pay the workers for any of this pre-shift time even when employees clocked-in before starting work. This practice also resulted in FLSA recordkeeping violations.

“Employers must understand the principles of what counts as work time and compensate employees for all the hours they work,” said Wage and Hour Division Assistant District Director Ryan Martin. “Other employers should use the resolution of this case as an opportunity to review their payroll practices to ensure they’re operating in compliance with the law. The Wage and Hour Division will continue to educate employers and enforce the law so that that employees are paid the wages they have legally earned.”

The Department provides numerous resources and tools to help employers understand their responsibilities and comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd including a search tool for workers who may be owed back wages collected by WHD.