US Department of Labor recovers $47K in back wages for 61 workers after finding overtime violations at two Myrtle Beach daycares

Employer:   Kids Paradise Child Development Center LLC, operating as Kids Paradise CDC

                      4716 US Highway 17 Bypass South, Myrtle Beach, SC 29588 and

                       2103 Cromley Circle, Myrtle Beach, SC 29577                                          

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found that two Myrtle Beach daycare facilities failed to pay overtime for hours worked over 40 in a workweek to 61 employees as required by the Fair Labor Standards Act. The agency determined the employer allowed employees to bank overtime hours, which were then mostly paid out at straight time rates in later workweeks. The employer also failed to include non-discretionary bonuses in the employees’ regular rate when computing overtime payments – leading to overtime payments at rates lower than required by law. Division investigators also found the employer failed to pay two non-exempt salaried employees a premium overtime rate for hours worked over 40 in a workweek. In addition, the employer failed to maintain accurate payroll records to include not showing the number of weekly banked hours they paid out to employees.

Back wages recovered: The division recovered $47,287 in back wages for 61 workers. 

Quote: “Employers are welcome to establish any pay period they choose, but regardless of whether they decide to pay weekly, bi-weekly, twice a month, or another schedule, they still must track workers’ hours each week to determine when overtime is due,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “We firmly believe that essential workers deserve to receive every penny of their hard-earned wages, and it is of utmost importance that employers fully comprehend their responsibilities in this regard. Our dedicated team is here to provide confidential assistance to anyone with questions or concerns.”

Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division, including the fact sheets that outline employers and employees obligations and rights in regard to overtime under the FLSA. Workers and employers alike can help track hours worked and pay by downloading the department’s Android and iOS timesheet app for free, available in English or Spanish.