Guam Construction Contractor to Pay Employees $141,755 in Back Wages After U.S. Department of Labor Investigation Finds Overtime Violations

HAGATNA, GUAM – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Citi Development & Construction Inc. – a construction contractor in Guam – will pay $141,755 to 57 employees for violating the Fair Labor Standards Act’s (FLSA) overtime, minimum wage and recordkeeping requirements. The employer also will pay $23,000 in penalties.

WHD investigators found that Citi Development & Construction Inc. paid employees overtime hours at straight-time rates, resulting in $138,565 in unpaid wages. WHD also found the employer failed to pay drivers who transported workers between barracks and job sites on the company’s behalf – before and after their work shifts – a total of $3,190 in unpaid wages for that time. Citi Development also failed to record some of the straight-time wages they paid workers for hours worked beyond 40 in a week, violating federal recordkeeping requirements.

“The U.S. Department of Labor is committed to ensuring that workers get paid all the wages they have legally earned,” said Wage and Hour District Director Terence Trotter in Honolulu, Hawaii. “The Wage and Hour Division will continue to enforce the law so all employers abide by the same rules. We encourage other employers in this industry to use the results of this investigation as an opportunity to review their own pay practices, and to avoid violations like those found in this case.” 

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.

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