Wage and Hour Division (WHD)

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SAN FRANCISCO -- The Department of Labor has recovered $107,300 in unpaid overtime for 35 employees of a Phoenix construction company. The department’s Wage and Hour Division determined that Package by Package, Inc. paid the employees, most of whom were Hispanic, straight time for all hours worked over forty in a workweek, a violation of the federal Fair Labor Standards Act (FLSA). The workers worked as many as 70 hours per workweek.

The back wages will compensate employees for work performed between April 2002 and April 2005. The company and its representative, John Montalvo II, agreed in a series of judgments filed in federal district court in Phoenix to pay the back wages to the workers. The Labor Department also fined Package by Package, Inc. $7,700 for repeat violations because a 2000 investigation disclosed overtime violations at a related company, United Southwest Construction, also owned by Montalvo. Package by Package, Inc. sells cut and packaged wood to housing developers, including Hancock Homes.

“This action reflects the Department of Labor’s commitment to protecting overtime rights and ensuring that workers receive the wages they have earned,” said George Friday, Jr., regional administrator of the U.S. Department of Labor’s Wage and Hour Division. The Wage and Hour Division recovered nearly $200 million in back wages in fiscal year 2004 for more than 288,000 workers.

The FLSA requires covered employees to be paid the minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 per week. Employers must also maintain accurate time and payroll records.

For more information about the FLSA, call the Phoenix Wage and Hour office at (602) 514-7100 or the Department of Labor’s toll-free helpline at 1-866-4US-WAGE (1-866-487-9243). Information on FLSA and Overtime Security is also available on the internet at www.wagehour.dol.gov.

Chao v. Package by Package, et al.

Case Number:CV-O5-1007-PHX-DGC

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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.