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ESA News Release: [02/15/2007]
Contact Name: Diana Petterson or Elizabeth Todd
Phone Number: (214) 767-4776, or x222, x221
Release Number: 07-0082-DAL

Houston Tree Service Pays $1.8 million in Overtime Back Pay to 2,501 Employees following Department of Labor Investigation

HOUSTON — ABC Professional Tree Services Inc. in Houston has agreed to pay $1,801,507 in back wages, after an investigation by the U.S. Department of Labor's Wage and Hour Division found that 2,501 current and former employees working in 16 states were not properly paid. The investigation, covering the two-year period Aug. 7, 2004 to Aug. 6, 2006, determined that ABC Professional Tree Services violated the overtime provisions of the Fair Labor Standards Act (FLSA).

"We are pleased that we were able to help these workers get the back pay they deserve," said U.S. Secretary of Labor Elaine L. Chao. "The department will continue our efforts to ensure that employers are paying workers properly."

The employer provides tree cutting, tree trimming and clean-up services around power lines for utility companies primarily during and after natural disasters. A portion of the back wages will go to workers who worked for the company in the aftermath of Hurricane Katrina.

The company is currently paying back wages to workers in Texas, Louisiana, Mississippi, Florida, Arkansas, Georgia, North Carolina, South Carolina, Ohio, New Jersey, New York, Maine, Cincinnati, Tennessee, Virginia and Maryland.

The FLSA requires that covered employees be paid at least 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 more than 40 per week. Employers must also maintain accurate time and payroll records.

For information about federal overtime laws, call the U.S. Department of Labor's toll-free help line 1 (866) 4US-WAGE (487-9243) or contact the Wage and Hour Division's district office in Houston at (713) 339-5500. Information is also available on the Internet at www.wagehour.dol.gov.