Logging Company to Pay $878,874 in Overtime and Recordkeeping Case
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Monday, July 23, 2018 |
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A federal judge has ordered Timberline South LLC – based in Gaylord, Michigan – and its manager Jim Payne to pay $878,874 in back wages and liquidated damages to 50 employees after finding the logging company and Payne violated the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).
The U.S. Secretary of Labor filed a complaint in the U.S. District Court for the Eastern District of Michigan after an investigation conducted by the Department's Wage and Hour Division's (WHD) Grand Rapids District Office concluded Timberline South and Payne violated the FLSA.
WHD investigators determined Timberline South LLC and Payne failed to pay employees – including truck drivers, equipment operators, and shop personnel – overtime when they worked beyond 40 hours in a workweek. Instead, the company paid only "straight time" no matter how many hours employees worked, and paid various combinations of hourly rates, piece rates, and day rates.
In his decision and order, Judge Thomas L. Ludington determined the Division properly reconstructed overtime back wages for employees where the employers failed to keep accurate records of the number of hours employees worked, as the law requires.
The FLSA requires covered employers to pay non-exempt employee's time-and-one-half their regular rates of pay after 40 hours worked per week regardless of whether the employees are paid on a salary, piece rate, hourly rate, or a combination.
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