Wage and Hour Division (WHD)

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ATLANTA -- M & M Line Clearance Inc. has agreed to pay $194,172 in back wages to 29 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division, which found violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

“The U.S. Department of Labor is committed to ensuring that employers follow federal law by properly paying employees for all hours worked,” said Oliver Peebles III, the deputy regional administrator for the Wage and Hour Division in the Southeast.

Wage and Hour investigators found that the Laurel, Miss., company failed to pay its nonexempt foremen for hours spent transporting employees between jobsites. The time was not recorded as work, resulting in the employees failing to receive overtime pay when those hours resulted in workweeks of greater than 40 hours.

Employees worked for both M & M Line Clearance Inc. and its subsidiary, Carson Line Service. Both companies act as utility line clearance and maintenance contractors to electric utility cooperatives.

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 over 40 per week. In general, “hours worked” includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal activity of the workday to the end of the last principal work activity of the workday. Employers must also maintain accurate time and payroll records.

The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional and outside sales employees. To qualify for exemption, employees generally must meet certain job duty and salary tests. Information about the current exemption can be found on the Internet at www.dol.gov/fairpay.

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 in fiscal year 2006 represent a 30 percent increase over back wages collected in fiscal 2001. The number of workers receiving back wages has increased by 14 percent since year 2001.

For more information about the FLSA, call the department’s toll-free helpline at 866-4US-WAGE (487-9243); visit the Internet at www.wagehour.dol.gov; or contact the Birmingham District Office of the Wage and Hour Division at 950 22nd St., North, Suite 656; phone 205-731-1305.

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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.