Recent Developments In Wage And Hour Law

Author:Mr Richard Glovsky
Profession:Edwards Wildman Palmer LLP

In our continued effort to keep our clients and friends informed, the Edwards Wildman Labor & Employment Group provides this monthly update on important developments in the world of wage and hour law. For other articles about FLSA, wage and hour and other labor and employment issues, please visit our Newsstand.

Federal Agencies

Wal-Mart Stores, Inc. agreed to pay $5.29 million to resolve alleged violations of the FLSA' overtime provisions. On May 1, the Department of Labor announced the settlement involving current and former vision center managers and asset production coordinators who Wal-Mart previously had treated as exempt from overtime.

The Department of Labor's Wage and Hour Division initiated an enforcement action on May 15 to ensure that contractors and subcontractors at Fort Sill Army Base and Altus Air Force Base in Oklahoma comply with the FLSA and other acts. The DOL announced its investigation due to the vulnerability of workers in the food service, custodial, landscaping and security industries.

On May 16, the Department of Labor's Wage and Hour Division opened an office in Redding, California, another demonstration that the DOL is emphasizing enforcement activities in Northern California.

The DOL announced on May 23 that Bierlein Cos. of Clarksville, Tennessee, agreed to pay more than $200,000 to 147 construction workers for violations of the FLSA's overtime and recordkeeping provisions.

On May 30, the DOL announced that Aspen Power of Lufkin, Texas paid nearly $500,000 in overtime back wages to 135 current and former construction workers who had been classified erroneously by Aspen Power as independent contractors.

Federal Courts

The federal court in the District of Columbia upheld the Department of Labor's compliance with the Administrative Procedures Act when it adopted a new regulation requiring employers to advise tipped employees of the "tip credit" requirements of the FLSA.

After finding violations of a consent judgment invoking the FLSA, a federal court in Kansas on May 2 ordered China Star of Wichita, Inc. and its owners to pay more that $220,000 in back minimum and overtime wages to 11 cooks, dishwashers and busboys.

In a case arising out of a lawsuit in federal court in Minnesota, the Department of Labor announced on May 3 that a landscaping firm had agreed to pay $500,000 in back overtime, damages and penalties for FLSA violations. The case involved the company's failure to pay time and one-half for hours worked...

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