Wage and Hour Division (WHD)

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VICTORIA, Texas -- TLC Staffing LLC in Victoria, Texas, has agreed to pay $112,640 in overtime back wages to 109 current and former registered and licensed vocational nurses and certified nurse assistants after a U.S. Department of Labor investigation found the company failed to pay overtime wages required by the Fair Labor Standards Act (FLSA).

“Workers are entitled to be paid their full wages, including required overtime pay,” said Cynthia Watson, regional administrator for the department’s Wage and Hour Division in the Southwest. “In this case, the company paid straight time for all hours worked, including hours worked over 40 in a workweek.”

The investigation by the Wage and Hour Division in Houston concluded that TLC Staffing, a health care staffing agency, misclassified employees as independent contractors. The company paid employees straight-time rates for overtime hours worked.

The company has agreed to future compliance and will pay the back wages due by April 2008.

The FLSA requires that covered employees be paid at least the federal minimum wage of $5.85 for all hours worked, plus time 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. For purposes of the FLSA, there are a number of factors for determining whether an individual is an independent contractor or an employee.

The Wage and Hour Division concluded 30,467 compliance actions and recovered a record $220 million in back wages for more than 341,000 employees in fiscal year 2007. Back-wage collections in fiscal year 2007 represent a 67 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 58 percent since fiscal year 2001.

For more information about the FLSA, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243) or contact the Wage and Hour Division’s Houston District Office at 713-339-5500. Information is also available on the Internet at www.wagehour.dol.gov.

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