U.S. Department of Labor issued the following announcement on Mar. 03.
After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Versa Integrity Group Inc. – based in Sulphur, Louisiana – has paid $495,901 in back wages to 411 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).
WHD investigators determined that the enterprise – which provides non-destructive testing services at 22 locations in Texas, Louisiana and Florida – erroneously classified wages as per diem payments to its employees who provide inspections, maintenance and repair services for industrial refining, chemical and offshore applications. The practice resulted in violations when the employer failed to include those amounts in employees’ regular rates of pay when calculating overtime. Excluding those amounts resulted in overtime being paid at rates lower than those required by law. This inaccuracy also violated FLSA recordkeeping requirements.
“Simply labeling a payment as ‘per diem’ does not necessarily exclude it from the calculation when determining overtime rates,” said Wage and Hour Division District Director Troy Mouton, in New Orleans, Louisiana. “This investigation revealed a violation we find in many industries. The Wage and Hour Division remains committed to improving compliance with the Fair Labor Standards Act through a combination of education and enforcement, and encourages all employers to reach out to us confidentially with any questions about their obligations.”
Original source can be found here.