Wage and Hour Division (WHD)

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MINNEAPOLIS --

A chain of sporting goods stores headquartered in Minnetonka, Minn., has paid $148,212 in overtime back wages to 188 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The company, 2nd Swing Inc., has locations in 24 states.

“The Labor Department is committed to vigorously enforcing the law to ensure that employees are paid all wages they are owed,” said Theresa Walls, assistant district director in Wage and Hour’s Minneapolis office. “Workers generally must be paid overtime pay after 40 hours in a week unless they are exempt and meet specific salary and job duty tests established for executive, administrative or professional employees.”

The Wage and Hour Division investigated 2nd Swing under the Fair Labor Standards Act (FLSA), the federal minimum wage and overtime law. The investigation disclosed that 188 salaried sales managerswere misclassified as exempt from overtime pay. The department found that they did not perform the job duties required for the overtime pay exemptions. The violations occurred from May 2003 through July 2005.

The company cooperated with the department during the investigation. After the Wage and Hour Division explained the requirements of the law, 2nd Swing agreed to audit its payroll under the department’s supervision and pay all back wages owed to employees. The company also agreed to change its payroll policies and comply with the federal wage and hour law in the future.

The FLSA requires that employers pay covered employees the minimum wage for all hours worked and time and one-half the regular rate of pay for hours worked over 40 in a week. 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 and professional sales employees. To qualify for the exemption, employees generally must meet certain job duty and salary tests. Under the Labor Department’s new “Overtime Security” rules, workers earning less than $23,660 per year – or $455 per week – are guaranteed overtime protection.

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. Information about the exemption for executive, administrative and professional employees can be found on the Internet at www.dol.gov/fairpay.

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