Wage and Hour Division (WHD)

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NEWARK, N.J. -- Adler Industrial Services Inc. paid $174,771 to 57 of its employees after a U.S. Department of Labor investigation discovered overtime violations of the Fair Labor Standards Act (FLSA). The Newark company provides roof vacuuming and industrial cleaning services.

The investigation, conducted by the department’s Wage and Hour Division district office in Mountainside, N.J., revealed that Adler Industrial Services did not pay overtime premiums for hours worked in excess of 40 in a workweek. The company failed to count travel time, piece rate earnings and production bonuses in computing overtime pay.

“This company’s lack of knowledge about the FLSA resulted in the violations,” said Joseph Petrecca, director of the Wage and Hour Division’s Northern New Jersey District Office. “It’s important that employers fully understand their obligations under the law to ensure that all employees are compensated properly. In this case, once the company was made aware of the problem, officials worked diligently with us to correct it, computing the back wages, paying the affected employees and ensuring future compliance.”

The FLSA also requires covered, nonexempt employees to be paid the federal minimum wage for all hours worked, and time and one-half their regular rates of pay for hours worked beyond 40 in a week. In addition, nonexempt employees who are paid commissions or salaries must receive at least the minimum wage and overtime premiums, just as employees who are paid by the hour or by the piece are paid. Employers must also maintain accurate time and payroll records.

In general, “hours worked” under the FLSA 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.

Effective July 24, 2007, the federal minimum wage for covered, nonexempt employees is $5.85 per hour. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009. For more information about the FLSA, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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