Wage and Hour Division (WHD)

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HURRICANE, W.Va. -- A & E Development in Hurricane, W.Va., will pay $55,535 in overtime back wages to 35 employees to correct violations of the Fair Labor Standards Act (FLSA) identified during a U.S. Department of Labor investigation. The company is a demolition and recycling contractor.

The investigation, conducted by the department’s Wage and Hour Division, found that from December 2005 through December 2007, the company paid employees straight time for all hours worked, including those over 40 in a workweek. A & E Development also failed to maintain records required by law.

“Employees should receive the proper pay for all of the hours they work,” said John DuMont, district director of the Wage and Hour Division’s Pittsburgh office. “It’s important for employers to know, understand and follow the law.”

After the Wage and Hour Division explained the law’s requirements, the company agreed to pay the affected employees and comply with the law in the future.

The FLSA 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 www.dol.gov/fairpay.

The Labor Department’s Wage and Hour Division concluded 30,467 compliance actions and recovered a record $220 million in back wages for more than 341,000 employees in fiscal year 2007. Back-wage collections in fiscal year 2007 represent a 67 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 58 percent since fiscal year 2001.

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 Wage and Hour Division’s Pittsburgh District Office at 412-395-4996 or 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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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.