Wage and Hour Division (WHD)

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CHICAGO --

McLaughlin Body Company, a manufacturer based in Moline, Ill., has paid $160,037 in overtime back wages to 356 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division.

“The Labor Department is committed to vigorously enforcing the law to ensure that all employees are paid all the wages they are owed,” said Enrique Rodriguez, district director of the Wage and Hour office in St. Louis, Mo.

The Wage and Hour Division investigated McLaughlin Body Company under the Fair Labor Standards Act (FLSA), the federal law that establishes minimum wage and overtime standards. The department found that the company failed to include shift differential pay and cost of living allowances in its overtime pay computations. As a result, employees were paid overtime at a rate lower than permitted by federal regulations. The violations occurred from January 2004 through January 2006.

In general, extra payments to employees must be added to their straight-time hourly earnings before calculating overtime earnings. The total earnings, including hourly pay, shift differential pay and cost of living allowances are divided by total hours worked to establish the proper overtime rate. Shift differential pay and cost of living allowances increase the overtime pay due the employee.

McLaughlin Body Company cooperated fully during the investigation. After the Wage and Hour Division explained the overtime pay requirements of the FLSA, McLaughlin Body agreed to comply with the law in the future. The company immediately changed its payroll policies to ensure that all workers are paid properly.

McLaughlin Body Company manufactures vehicle cabs for the military and other companies. The company’s headquarters is in Moline, and it has manufacturing facilities in East Moline and Rock Island, Ill.

The FLSA requires employers to pay covered non-exempt 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.

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.