Wage and Hour Division (WHD)

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DETROIT --

The U.S. Department of Labor has obtained a consent judgment ordering a Michigan company engaged in construction of retail stores in 30 states to pay 240 workers $311,520 in a lawsuit alleging overtime pay and recordkeeping violations of the Fair Labor Standards Act (FLSA).

The complaint, filed by the Labor Department in federal district court, alleged that employees of Woods Construction, based in Sterling Heights, Mich., worked more than 40 hours in a week and were not paid overtime pay. The complaint also alleged recordkeeping violations. The violations occurred during the period July 2003 through August 2005.

“The Department of Labor will take all necessary steps to ensure that employees receive all wages they are owed,” said James Smith, district director of the department’s Wage and Hour Division in Detroit.

The consent judgment, entered in U.S. District Court for the Eastern District of Michigan, permanently enjoins the company from future violations of the overtime pay and recordkeeping provisions of the FLSA.

Woods Construction cooperated during the investigation. After the Wage and Hour Division explained the requirements of the FLSA, the company changed its payroll policies to ensure that all workers are paid properly.

The FLSA requires covered employees to 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. Employers must also maintain accurate time and payroll records.

For more information about the FLSA, call the Department of Labor’s toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.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.