Wage and Hour Division (WHD)

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BOSTON, MASS -- The U.S. Department of Labor has announced that a Charlestown, R.I., employer has agreed to pay 21 employees $32,500 in overtime back wages and to pay the Labor Department $7,000 in penalties for alleged violations of the Fair Labor Standards Act (FLSA).

“This action should remind employers of our commitment to protecting overtime rights,” said Corlis Sellers, Northeast regional administrator of the department’s Wage and Hour Division. “These employees weren’t receiving their rightful pay, and we took action to restore $32,500 to them. Especially when it comes to low wage workers, we will not hesitate to resort to the courts to ensure such workers are paid all the wages they are due.”

In March 2004, the Labor Department had filed suit in the U.S. District Court for the District of Rhode Island charging the following defendants with alleged violations of the FLSA: The Lobster Pot Restaurant; Oceanview Motor Inn, Land Harbor Mobile Home Park; and Charles and Nancy Brooks, who are the owners of these businesses.

An investigation by the department’s Wage and Hour Division office in Hartford, Conn., had found that the companies required employees to work more than 40 hour workweeks without paying proper overtime wages. The companies also failed to maintain adequate and accurate records of the hours worked by employees and the wages they were paid.

The FLSA requires that employees be paid at least the applicable minimum wage as well as time and one-half their regular rate of pay for hours worked over 40 per week. An employer must also keep accurate records of employees’ wages, hours and other conditions of employment.

The alleged violations took place between Feb. 27, 2001 and Sept. 7, 2003.

A consent judgment recently signed by U.S. District Judge William E. Smith, requires the defendants to pay 21 employees $32,500 in overtime back wages and to pay the Labor Department $7,000 in penalties The company, which denied any violations, is also prohibited from future violation of the FLSA.

The Wage and Hour Division recovered nearly $200 million in back wages in fiscal year (FY) 2004 for more than 288,000 workers. Average days to resolve a complaint decreased in FY 2004 from 108 days to 92 days.

Information on the requirements of the FLSA may be obtained by calling the department’s toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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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.