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ESA News Release: [05/10/2007]
Contact Name: Diana Petterson or Elizabeth Todd
Phone Number: (214) 767-4776, x222 or x221
Release Number: 07-0628-DAL

Labor Department investigation spurs Houston company to pay 233 workers $1.1 million in back wages

HOUSTON — The Mudlogging Company USA in Houston has paid $1,151,232 in back wages to 233 employees following a U.S. Department of Labor investigation finding that the company violated the overtime wage provisions of the Fair Labor Standards Act (FLSA).

"The department recovered more than $1.1 million in back pay and a commitment that workers will be properly compensated for overtime in the future," said Secretary of Labor Elaine L. Chao.

An investigation by the Wage and Hour Division's Houston District Office, covering the period between Aug. 16, 2004, and Aug. 15, 2006, determined that The Mudlogging Company paid mudloggers, trainees and non-exempt unit managers a day rate without additional overtime compensation for the hours worked over 40 in a workweek. Mudloggers are engaged in testing services while drilling is taking place for oil and gas exploration.

The back wages have been paid in full and the employer has agreed to continued compliance with the law.

The FLSA requires that covered employees be paid at least the federal minimum wage for all hours worked, plus time and one-half their regular rates of pay for hours worked more than 40 per week, unless otherwise exempt. Employers must also maintain accurate time and payroll records. The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional and outside sales employees. To qualify for exemption, employees generally must meet certain job duty and salary tests.

For information about the FLSA, call the U.S. Department of Labor's toll-free help line at (866) 4US-WAGE (487-9243); visit the Internet at www.wagehour.dol.gov; or contact the Wage and Hour Division's Houston office at (713) 339-5500. Information about the current exemption for white collar executive and administrative employees is available at www.dol.gov/fairpay.

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