DOL cracks down on OT cases: Houston firm an early target — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

DOL cracks down on OT cases: Houston firm an early target

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JVA Insulation Inc. of Houston has agreed to pay $203,640 in back wages to 53 insulation installers who claimed the company had failed to pay them overtime.

The U.S. Department of Labor (DOL), which investigated JVA between May 2006 and May 2008, found that the company violated the Fair Labor Standards Act by paying its employees on a piece-rate basis for all hours worked—even when they worked more than 40 hours in one week.

In a statement, Cynthia Watson, the Southwest regional administrator for the DOL’s Wage and Hour Division said, “In this case, some employees averaged more than 49 hours per week without overtime compensation.”

According to the DOL, JVA cooperated with the investigation and is paying the back wages.

Final note:
The DOL is aggressively pursuing overtime claims. Now is the time to audit your own practices to make sure they meet standards before the agency comes investigating.

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