Wage and Hour Division (WHD)

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DALLAS, TX -- The U.S. Department of Labor today announced filing of a lawsuit against Carrollton, Texas-based Kiwi Services Inc. and its owners for allegedly failing to pay carpet cleaners and office personnel overtime pay. The company also has locations in Houston and Marietta, Ga.

The complaint was filed in U.S. District Court for the Northern District of Texas against the company and Hassan Abu-Eideh and Angela Abu-Eideh. The suit resulted from an investigation by the Labor Department’s Dallas Wage and Hour Division which found overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

“Kiwi Services paid a bonus to office workers which was not included in the overtime rate of pay, and technicians were classified as independent contractors and paid on a commission basis without additional overtime compensation,” said Cynthia Watson, Wage and Hour regional administrator in Dallas. “Employees are entitled to receive the overtime wages they earn. In this case, more than $415,000 is due to 296 workers.”

The investigation, which covered the two-year period June 30, 2001 to June 18, 2003, determined that Kiwi Services, a residential carpet and air duct cleaning service, had violated the overtime provisions of the FLSA by not properly paying employees overtime wages equal to one and one-half times their regular rate of pay for the hours they worked. In addition, the required recordkeeping was not maintained.

The FLSA requires that covered employees be paid the minimum wage of $5.15 per hour for all hours worked, plus time and one-half their regular rate of pay, including commissions, bonuses and incentive pay, for hours worked over 40 per week. Employers must also maintain accurate time and payroll records.

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 Hour Dallas District Office at (817) 861-2150, metro number (817) 261-4371 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 and www.youthrules.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.