Wage and Hour Division (WHD)

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JACKSONVILLE, Fla. --

Montecito Property Co. has agreed to pay $315,750 in overtime back wages to 165 employees after an investigation by the U.S. Labor Department’s Wage and Hour Division determined the company had violated the Fair Labor Standards Act (FLSA).

“Investigators found that some employees at the company’s Jacksonville headquarters and other locations had erroneously been classified as exempt from overtime provisions of the FLSA,” said Michael Young, the Wage and Hour Division’s district director in Jacksonville.

According to Young, the company worked cooperatively with investigators, computed back wages for employees working at all company locations and made appropriate changes to its records and payroll system, assuring future compliance with the FLSA.

Montecito Property Co. is a multi-state real estate developer with offices in Florida, Georgia, South Carolina, Arizona and California.

The investigation showed that the employees had been misclassified as administrative, professional or salaried executives, and had been paid straight salaries with no additional overtime compensation when they worked more than 40 hours in a work week. Additionally, non-discretionary bonuses had not been included in regular pay rates.

Employees covered by the FLSA must be paid one-and-one-half times their regular rate of pay for hours worked over 40 in a single work week, unless otherwise exempt. Employers must also maintain accurate records of employees’ wages, hours and other conditions of employment.

For more information about FLSA and other laws administered by the Wage and Hour Division, call the department’s toll-free help line at 1 (866) 4US-WAGE (487-9243); visit the Internet at www.wagehour.dol.gov; or contact the Wage and Hour Division’s district office in Jacksonville at 400 Bay St., Suite 956; Phone: (904) 359-9292.

Information about the current exemption for while-collar executive, administrative, and professional employees can be found on the Internet at www.dol.gov/fairpay.

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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.