Wage and Hour Division (WHD)

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CHICAGO --

The U.S. Department of Labor announced today that Chicago-based Bally Total Fitness Corp. has agreed to pay $754,556 in back wages to 3,245 workers as a result of overtime pay violations during the period between December 2003 and March 2006.

Under supervision by the department’s Wage and Hour Division, the company conducted a nationwide self-audit which revealed that Bally improperly computed overtime compensation in violation of the Fair Labor Standards Act (FLSA).

“The workers in this case were improperly compensated for overtime hours worked,” said Paul DeCamp, administrator of the Wage and Hour Division. “Bally Total Fitness Corp. has assured us that these workers will receive the back pay that the law demands under FLSA.”

The FLSA requires covered employees be paid the federal minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 in a single week. Employers must also maintain accurate time and payroll records.

The Wage and Hour Division concluded 34,858 compliance actions in fiscal year 2005 and recovered more than $166 million in back wages for more than 241,000 employees. Back-wage collections last year represent a 26 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 11 percent since fiscal year 2001.

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 current exemption for white-collar executive, administrative and professional employees can be found on the Internet at www.dol.gov/fairpay.

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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.