Federal Court of Appeals Affirms U.S. Department of Labor’s Findings In Wage Violation Case against Louisville Security Services Provider

LOUISVILLE, KY – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. Court of Appeals for the Sixth Circuit in Cincinnati, Ohio, issued an opinion affirming the Department's assertion that Off Duty Police Services Inc. – a security and traffic control services provider based in Louisville, Kentucky – violated overtime and recordkeeping provisions of the of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Off Duty Police Services Inc. incorrectly classified employees as independent contractors, leading to overtime violations when the employer failed to pay employees time-and-a-half for any hours they worked over 40 in a workweek. Investigators also found the employer did not record start and stop times for employees' work hours and failed to keep a record of all the hours employees worked, resulting in recordkeeping violations of the FLSA.

While most of Off Duty Police Services Inc.'s employees were uniformed police officers who also worked for other law enforcement entities, others were non-sworn with generally no law enforcement background. The Sixth Circuit found that both groups of workers were employees, overturning a previous district court's finding that the sworn police officers were independent contractors who fell outside the scope of the FLSA's protections. The Sixth Circuit Court went on to affirm the Department's back wage calculations as the best method available to determine wages owed to employees since the employer failed to keep accurate records, and remanded the case to the district court to award damages for the sworn officers.

"The resolution of this case should remind other employers to review their pay practices to ensure they comply with the law," said Wage and Hour Division District Director Karen Garnett, in Louisville. "Violations such as those in this case can add up quickly and become very costly. The Department offers extensive guidance, and encourages employers to reach out to us for assistance to ensure that they understand their responsibilities."

"The U.S. Department of Labor will not hesitate to protect employees, and to level the playing field for employers who obey the law," said Associate Regional Solicitor Theresa Ball, in Nashville.

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.