U.S. Department of Labor Recovers $130,000 for Employees of San Marcos, Texas Security Company to Resolve Minimum Wage, Overtime Violations

AUSTIN, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), U.S. Security Service PLLC in San Marcos, Texas has paid $133,070 to resolve minimum wage and overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer, which provides security services to clients in New Braunfels, San Marcos, Kyle and Austin, Texas, made deductions from employees’ wages to pay for uniforms. This practice resulted in violations when these deductions brought their hourly wages below the federally required $7.25 per hour. U.S. Security Service also incorrectly classified security guards as independent contractors and subsequently failed to pay them overtime when they worked more than 40 hours per week. WHD also cited the employer for recordkeeping violations.

“During the busy holiday season, security guards often work extra hours, and employers must pay them all of the wages they’ve legally earned,” said Wage and Hour Division District Director Nicole Sellers in Austin, Texas. “This case should remind all employees to review their pay and recordkeeping practices to ensure they pay their employees properly and avoid violations of the law. We encourage employers to contact the Wage and Hour Division for assistance in understanding their responsibilities.”

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.

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/agencies/whd. 

The mission of WHD is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.