Houston, we have a problem: $2.5 million for OT violations — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Houston, we have a problem: $2.5 million for OT violations

IFCO Systems learns a hard lesson in wage and hour labor law

Get PDF file

by on
in Human Resources

A Houston manufacturing company has paid $1.6 million in back wages to 1,751 employees after a federal investigation revealed the company violated the federal overtime labor law.

According to Elizabeth Todd, a spokeswoman for the U.S. Department of Labor in Dallas, IFCO Systems North America, which manufactures and repairs reusable plastic containers and wooden pallets, also paid $963,050 in civil penalties assessed by the DOL’s Wage and Hour Division.

The federal investigation found that IFCO Systems failed to pay its workers time-and-a-half for hours worked over 40 in a workweek in violation of the Fair Labor Standards Act, and that the company failed to maintain employee records.

Final tip: Expect more wage-and-hour lawsuits during this extended economic downturn.

Leave a Comment


Previous post:

Next post: