Wage and Hour Division (WHD)

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HOUSTON -- Houston-based Excell Cleaning and Building Services Inc. has agreed to pay $278,483 in back wages to 116 current and former janitorial workers after an investigation by the U.S. Department of Labor’s Wage and Hour Division found the company failed to properly pay overtime wages.

The investigation found that employees did not receive overtime pay for hours worked over 40 in a workweek, violating provisions of the Fair Labor Standards Act (FLSA). In addition, required time and payroll records were not maintained.

“Employees were paid straight time for all hours worked,” said Cynthia Watson, the Wage and Hour Division’s regional administrator for the Southwest. “Some employees worked as many as 54 hours in a workweek without overtime compensation. This situation is unacceptable.”

Excell provides janitorial services in the greater Houston area. The company fully cooperated with the investigation and has agreed to future compliance with the FLSA. Back wages will be paid by the end of March.

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

The Wage and Hour Division concluded 31,987 compliance actions in fiscal year 2006 and recovered more than $171 million in back wages for more than 246,000 employees. Back-wage collections last year represent a 30 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 14 percent since year 2001.

For more information about federal overtime laws, call the U.S. Department of Labor’s toll-free help line at (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.

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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.