Wage and Hour Division (WHD)

Printer-Friendly Version

Press Releases

HOUSTON -- Houston-based Aegis Funding Corp. has paid $507,899 in back wages to 340 employees after an investigation by the U.S. Department of Labor’s Wage and Hour Division in Houston found the company had failed to properly pay overtime wages to current and former inside sales and loan processing staff.

The investigation covering the two-year period April 30, 2003 to April 30, 2005, found that 340 employees in the states of Texas, Florida, Illinois, New York, Rhode Island and California did not receive overtime pay for hours worked over 40 in a work week, violating provisions of the Fair Labor Standards Act (FLSA). In addition, required time and payroll records were not maintained.

“The company not only failed to properly compensate employees for overtime hours worked, but also misclassified inside sales staff as exempt from overtime,” said Cynthia Watson, the Wage and Hour Division’s regional administrator for the Southwest. “We are pleased to have recovered almost $508,000 for these workers.”

The FLSA requires that covered employees be paid at least the federal minimum wage of $5.15 per hour for all hours worked, plus time and one-half their regular rate of pay, including commissions, bonuses and incentive pay, for hours worked more than 40 per week. Employers must also maintain accurate time and payroll records.

Aegis Funding, doing business as Aegis Home Funding, provides residential mortgage financing nationwide. The company fully cooperated with the investigation and has agreed to future compliance with the FLSA. Back wages have been paid in full.

For more information about federal overtime laws, call the U.S. Department of Labor’s toll-free help line (866) 4US-WAGE (487-9243) or contact the Wage and Hour Division’s district office in Houston at (713) 339-5500. Information is also available on the Internet at www.wagehour.dol.gov.

###

U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.