US Department of Labor recovers $288K in back wages, damages from property management group that willfully denied 92 employees overtime

ATLANTIC BEACH, FL – The U.S. Department of Labor has recovered $288,979 in back wages and liquidated damages for 92 employees after its investigation found an Atlantic Beach property management group’s improper pay practices denied them overtime wages they earned.

The department’s Wage and Hour Division found American Management Group of North Florida LLC, operating as American Management Group, claimed an overtime exemption illegally and shaved hours off some workers’ time sheets to avoid paying overtime for hours over 40 in a workweek. Investigators also determined the employer paid some of the affected workers a flat salary and failed to include bonuses and commissions in their regular rate to calculate the overtime rate. The company’s actions violated provisions of the Fair Labor Standards Act. 

In addition to paying back wages and damages, American Management Group was assessed a $15,000 civil money penalty to address their violations’ willful nature. 

“Some employers believe paying employees a salary releases them from their legal obligation to pay them their full earned wages for hours over 40 in a workweek. The illegal misuse of the overtime exemptions is a widespread and pervasive problem that denies workers their full, hard-earned wages,” explained Wage and Hour Division District Director Vilma Bell in Orlando, Florida. “In this case, American Management Group has learned shortchanging employees comes with costly consequences.”

Headquartered in Atlantic Beach, American Management Group of North Florida LLC, a real estate management firm operating primarily in the Southeast, is a Jeff Klotz company. Jeff Klotz is the founder and CEO of The Klotz Group of Companies which serves as a parent company for operating subsidiaries and investment partnerships, including investments in more than 125,000 apartment units, 43 ground-up developments and other e-commerce, healthcare, printing, manufacturing and marketing projects. The company employs over 450 employees in Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. 

Workers and employers can call the Wage and Hour Division confidentially with questions, and the division can speak with callers in more than 200 languages. For more information about the FLSA and other laws enforced by the agency, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). The division also offers online resources for employers, such as a fact sheet on Fair Labor Standards Act overtime requirements.

Workers and employers can help ensure hours worked and pay are accurate by downloading the department’s Android or iPhone Timesheet App for free in English and Spanish. 

Ed. Note: The original version of this release stated The Klotz Group of Companies LLC operated as American Management Group, and illegally claimed the overtime exemption. In fact, the American Management Group of North Florida LLC is incorporated separately and entered into the settlement agreement to resolve its violations.