Oregon Insulation Contractor to Pay $159,027 to 31 Employees For Overtime Violations Found by U.S. Department of Labor

BEND, OR – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Energy Conservation Insulation Company – an insulation contractor based in Bend, Oregon – will pay $159,027 to 31 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found Energy Conservation Insulation Company paid employees piece rates, based upon their production, without regard to the number of hours they worked. This practice violated FLSA overtime requirements when employees worked more than 40 hours in a workweek and the employer failed to pay them time-and-one-half their regular rates of pay for the overtime hours. The employer also violated FLSA recordkeeping requirements by failing to record and maintain accurate payroll and time records for employees.

“Employers are responsible for ensuring that they pay employees all the wages they have legally earned, including overtime,” said Wage and Hour District Director Thomas Silva, in Portland, Oregon. “Unlawful pay practices hurt employees and prevent law-abiding employers from competing on a level playing field. Violations like these can be avoided, and the U.S. Department of Labor is eager to assist employers and employees in understanding their rights and 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.

WHD’s mission 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.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.