Oklahoma Power Line Repair Company Pays $62,263 in Back Wages, Damages After U.S. Department of Labor Finds Overtime Violations

SHARON, OK – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Custom Energy Service Inc. – a power line repair company based in Sharon, Oklahoma – has paid $62,263 in back wages and liquidated damages to 11 employees for violating the Fair Labor Standards Act's (FLSA) overtime requirements.

WHD investigators found the company violated federal overtime requirements when the employer incorrectly applied an exemption from the overtime requirements that applies only to drivers, driver's helpers, loaders, or mechanics for vehicles that transport goods in interstate commerce and weigh more than 10,000 pounds, to its linemen and others who did not qualify for the exemption based on their duties. As most employees worked a 7 days on, 7 days off schedule, a large amount of overtime hours were accrued in each week. As a result, non-exempt employees who worked over 40 hours in a workweek were not paid the correct overtime rate.

"All covered employers must comply with federal labor laws, and must fully understand the rules around exemptions from overtime requirements before claiming them," said Wage and Hour Division District Director Michael Speer, in Oklahoma City, Oklahoma. "Other employers should use the outcome of this investigation as an opportunity to examine their pay practices to ensure that they are playing by the rules. We are available to answer any questions, confidentially, at 866-4US-WAGE."

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

WHD provides employers with compliance assistance resources to help them comply with the FLSA. Employers that 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.