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Contractor to Pay $292K for OT Wages

Tuesday, June 17, 2014

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A California concrete and asphalt paving contractor has agreed to pay $292,184 in overtime back wages after failing to accurately record and pay employees for hours worked, the U.S. Department of Labor says.

Investigators announced Wednesday (June 11) that GM Sager Construction Inc., of Pomona, CA, failed to pay 26 employees for their travel time between the job site and the company's yard at the end of each day and for work once employees returned to the yard.

The company agreed to pay $146,092 in overtime back wages and the same amount in liquidated damages.

Paying for Travel Time

GM Sager Construction violated the Fair Labor Standards Act's overtime and record-keeping provisions, according to investigators.

©iStock / shotbydave

GM Sager Construction agreed to pay $146,092 in overtime back wages and the same amount in liquidated damages.

The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour, and overtime pay must be calculated using the employee's average hourly rate.

The act also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment.

"Employers must record and pay for all hours of work," said Daniel Pasquil, director of the Wage and Hour Division's West Covina District Office.

"This includes travel time between work sites. We urge all employers to review their pay practices to ensure compliance."


Tagged categories: Contractors; Enforcement; Ethics; Government; Labor; Workers

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