Wage and Hour Division (WHD)

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AUSTIN, TX -- Village Glen Apartments of Austin, Texas, has paid $220,544 in back wages to 202 former office and maintenance employees following an investigation by the U.S. Department of Labor. Civil money penalties totaling $81,200 were also assessed for violations of the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).

“The Department of Labor is committed to strong enforcement of the law to ensure that all workers, particularly low-wage earners, are paid the overtime they are entitled to receive, said Secretary of Labor Elaine L. Chao. “Through the Department’s determined efforts, nearly $200 million in back wages were recovered for more than 288,000 workers last year.”

An investigation by the department’s Wage and Hour Division determined that apartment owner and Austin resident, James Crockett, violated the provisions of the FLSA when he deducted rental costs leaving workers paid below minimum wage and failed to pay workers overtime compensation for work in excess of 40 hours in a workweek.

The investigation began in 1991 and, following years of court proceedings, the Department of Labor resolved the case when the company’s Austin real estate property was sold to pay the back wages in full. The company is no longer in business.

The FLSA requires that covered employees be paid the minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 per week. The FLSA also requires employers to maintain accurate time and payroll records and sets standards for the employment of youth under 18 years of age.

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

For more information about the FLSA, call the Wage and Hour San Antonio office at (210) 308-4515 or the Department of Labor’s toll-free line at 1-866-4USWAGE (1-866-487-9243). Information is also available at www.wagehour.dol.gov.

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