Payroll blunder leads to big payday for Hurricane Katrina workers

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in Small Business Tax Deduction Strategies

Two companies providing services in the Hurricane Katrina recovery have agreed to pay a total of nearly $1 million to settle claims that nearly 400 workers weren’t paid fairly for their overtime hours.

A U.S. Labor Department investigation found that L&R Security, based in New Orleans, paid straight time for overtime hours worked by guards who secured government-run trailer sites. HKA Enterprises, of Duncan, SC, which provided debris removal monitoring in New Orleans, was cited for doing the same.

Federal law requires time-and-a-half pay for hours worked beyond 40 in a week.

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