Guam Construction Company to Pay $109,112 in Back Wages and Penalties For Overtime Violations Found by U.S. Department of Labor

DEDEDO, GUAM – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Modern Konstrak – a construction company based in Dededo, Guam – will pay $85,993 to 75 employees for violations of the Fair Labor Standards Act’s (FLSA) overtime requirements. The employer will also pay $23,118 in penalties for the willful nature of the violations.

The WHD investigation found that Modern Konstrak paid employees for their overtime hours at straight-time rates. The FLSA requires employers to pay overtime at time and one-half workers’ regular rates of pay for hours they work beyond 40 in a workweek. The company also failed to keep accurate records of the actual number of hours employees worked, resulting in FLSA recordkeeping violations.

“The U.S. Department of Labor is committed to ensuring that employers pay workers all the wages they have legally earned,” said Wage and Hour District Director Terence Trotter in Honolulu, Hawaii. “Employers cannot enter into agreements with their employees to work for less than the law requires. We encourage other employers to review their own pay practices to ensure they comply with the law, and avoid overtime 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.

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 paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, 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.