U.S. Department of Labor Investigation Results in Florida Cell Phone Company Paying $27,514 in Back Wages and Damages

PENSACOLA, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), IV Wireless LLC – operating as Boost Mobile in Pensacola, Florida – will pay $27,514 in back wages and liquidated damages to 32 employees for violating the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined the cell phone service and accessories provider deducted pay from employees to make up for cash register shortages, inventory deficiencies, and transactional errors. This practice resulted in minimum wage violations when, because of the deductions, the employees’ hourly wages fell below the federal minimum wage of $7.25 per hour. IV Wireless also failed to pay some employees time-and-one-half when they worked more than 40 hours in a workweek, paying only straight-time wages, and resulting in overtime violations of the FLSA.

When IV Wireless did pay overtime, the employer failed to include commission payments when determining employees’ overtime rates, resulting in payments in amounts lower than the law requires. The employer also failed to maintain accurate records of the number of hours employees worked on a weekly basis.

“Penalizing employees by withholding a portion of their pay created violations in this case and denied workers wages they had legally earned,” said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. “Employers can reach out to us, confidentially, to ask questions and get information about their responsibilities. We offer a wide variety of tools to help them so that violations may be avoided.”

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). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.