Wage and Hour Division (WHD)

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SAN FRANCISCO -- IDC Ltd., a Henderson, Nev.-based fundraising company for nonprofit organizations, has paid $128,084 in overtime back wages to 74 current and former employees following an investigation by the U.S. Department of Labor.

Investigators from the department’s Wage and Hour Division found that IDC did not pay the workers overtime as required by the federal Fair Labor Standards Act (FLSA). Some sales associates and other office workers who were eligible for overtime pay worked as many as 50 hours in a workweek between April 2005 and January 2007. IDC failed to record or pay them for the overtime hours.

“The Department of Labor is committed to the strong enforcement of labor laws,” said George Friday Jr., western regional administrator for the Wage and Hour Division. “In this case, the employer paid the workers on a salary basis without compensating them for hours over 40 in a workweek. It is essential for employers to consider both duties and salary to determine whether a worker is exempt from FLSA coverage.”

The FLSA requires that covered employees be paid at least the federal minimum wage and receive overtime at one and one-half times their regular rates of pay for hours worked beyond 40 per week. The law 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. Under the FLSA, employers must also maintain accurate time and payroll records.

The Wage and Hour Division recovered more than $171 million in back wages for over 246,000 workers and assessed nearly $7.9 million in civil money penalties in fiscal year 2006. Back-wage collections last year 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 fiscal 2001.

The division’s Web site, www.wagehour.dol.gov, offers more information about the FLSA. For additional information, call the Wage and Hour Division’s office in Phoenix at (602) 514-7120 or the Department of Labor’s toll-free helpline at (866) 4US-WAGE (487-9243). Information about the current exemption 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.