Apex-based PCM Construction Services has settled U.S. Department of Labor (DOL) charges that it cheated employees out of overtime pay when they worked more than 40 hours in a workweek. The problem: PCM paida flat salary regardless of how many hours they put in. That’s a violation of the federal Fair Labor Standards Act.
The company agreed to a settlement in which it will pay $72,143 in back wages to 195 employees.
Inspectors from the DOL’s Wage and Hour Division discovered the overtime violations during an investigation that also uncovered inaccurate records of the number of hours employees worked. The DOL determined the violations were willful, so PCM must also pay $36,465 in civil penalties to the Department of Labor.
The company has had to settle overtime disputes before. Under one previous settlement, PCM paid $93,600 to 114 employees who had been wrongfully deprived of overtime pay.
Note: Anytime an employer is found to have violated a federal employment law, investigators will look for the same violations again. This applies to safety and health issues, discrimination or—as in this case—wage-and-hour issues.