What started as overtime missteps soon escalated when a federal investigation looked into the company’s wage-and-hour compliance.
An investigation by the Department of Labor’s Wage and Hour Division (WHD) determined that Speedy’s Framing LLC failed to pay overtime premiums to dozens of employees in violation of the Fair Labor Standards Act (FLSA).
Under the FLSA, nonexempt employees must receive overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek.
In this case, the workers were paid straight time for hours worked in excess of 40 rather than the federally mandated overtime premium, WHD found.
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On top of the overtime violations, the employer failed to pay travel time to one foreman who drove the employer’s vehicles between the facility and worksites, according to investigators. This resulted in additional unpaid overtime.
Travel time is a common compliance pitfall in mobile workforces. Driving company vehicles or traveling between job sites during the workday can count as compensable hours.
“The U.S. Department of Labor is determined to hold employers accountable, particularly when they deliberately attempt to evade the law by denying workers overtime pay,” said Katherine Walum, WHD District Director in Portland, Oregon....
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