Saipan Waste Collection Company Pays Employees $30,077 in Back Wages, Damages, After U.S. Department of Labor Finds Overtime Violations

HONOLULU, HI – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), AYD Services Inc. – a Saipan-based provider of environmental and waste collection services – has paid $30,077 in back wages and liquidated damages to 21 employees for violations of the Fair Labor Standards Act’s (FLSA) overtime requirements. The employer also paid $17,976 in civil penalties as a repeat and willful violator of the FLSA’s wage standards.

WHD investigators found the employer illegally entered into agreements with workers to waive their lawful rights to earn overtime pay when they worked beyond 40 hours in a workweek. By doing so, the employer paid workers at their straight-time rates regardless of the number of hours they worked in a workweek, triggering overtime violations when those hours exceeded 40. Previous investigations of AYD Services Inc. revealed minimum wage and overtime violations.

“Employers cannot enter into agreements with workers to waive their rights under federal law,” said Wage and Hour District Director Terence Trotter in Honolulu, Hawaii. “We will continue to enforce the law so all employers abide by the same rules and compete on a level playing field. We also encourage employers and employees to call us for assistance to improve their understanding of the labor standards and learn about our on-line educational tools, so violations like those found in this investigation can be avoided.”

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.