Wage and Hour Division (WHD)

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SAN FRANCISCO, CA -- The U.S. Department of Labor announced today that Ganahl Lumber Company has paid 505 sales employees $212,904 for unpaid overtime. The firm, which sells building materials throughout Orange and Riverside counties, did not correctly calculate hourly employees’ overtime premium pay and misclassified salaried employees as exempt from overtime pay.

The Fair Labor Standards Act (FLSA) requires that overtime be computed on all of an employee’s pay, including incentive pay and most types of bonus payments. Ganahl Lumber failed to include employees’ incentives and yearly bonuses when computing an overtime rate for hourly employees.

The firm also failed to pay salaried employees overtime premium pay when they worked more than 40 hours in a workweek. According to the FLSA, non-exempt, salaried employees must earn no less than one-and-one-half times their regular rate for any hours worked over 40 per workweek. The investigation also determined that the firm did not keep accurate records of hours worked.

Ganahl Lumber Company is headquartered in Anaheim with yards located in Anaheim, Buena Park, Capistrano Beach, Corona, Costa Mesa, Laguna Beach, Lake Forest and Los Alamitos. The investigation covered time worked between May 6, 2002 and May 2, 2004.

“It is important that employers fully understand their obligations under the law and assure that all their employees are paid proper overtime in accordance with the Fair Labor Standards Act,” 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 Wage and Hour Division offers a user-friendly website to help employers properly pay and classify their employees. Employers and employees can visit www.wagehour.dol.gov for more information about the FLSA, including an on-line tool for determining overtime eligibility -- the elaws FLSA Overtime Security Advisor -- at www.dol.gov/elaws/overtime.htm.

Information about the FLSA is also available from the San Diego Wage and Hour office at (619) 557-5606 or the Department of Labor's toll-free help line at 1-866-4US WAGE (1-866-487-9243).

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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.