$439,030 in Back Wages and Damages to be Paid by WadeCo Specialties for Violating Overtime and Time Keeping Requirements

 
Monday, July 11, 2016
 

U.S. Department of Labor’s Wage and Hour Division investigators found that WadeCo Specialties Inc. which is headquartered in Midland, Texas and supplies, transports, services and stores chemicals required for oil field services and operation violated the overtime and recordkeeping provisions of the Fair Labor Standards Act. The employer incorrectly classified service technicians and their billing support manager as exempt from the overtime requirements of the FLSA. The employer paid these workers flat salaries, without regard to the number of hours they actually worked. This practice resulted in violations when they failed to pay the workers overtime when they worked more than 40 hours in a week. The employer also failed to keep accurate time records as required by the FLSA.

WadeCo Specialties will pay $219,515 in back wages and an equal, additional amount in liquidated damages for a total of $439,030 to 50 employees. The employer has reclassified the positions in question correctly as non-exempt, pays workers in those positions overtime, and now keeps records as required to comply with the FLSA.

The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the department’s regulations.

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