Wage and Hour Division (WHD)

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ELKHART, Ind. -- The U.S. Department of Labor has received an agreement from Elkhart-based My-Tre’ Glamma Management, which operates seven Indiana McDonald’s franchises owned by Harry L. Smith, to pay $25,913 in back wages for 173 workers after an investigation by the department’s Wage and Hour Division determined the company had violated the minimum wage provisions of the Fair Labor Standards Act (FLSA).

"The department is committed to ensuring that all workers receive the wages they have earned,” said James Smith, acting director of the Wage and Hour Division Indianapolis District Office.

The investigation covered the period from August 2004 to July 2006 at five of the company’s stores in Elkhart, one in Middlebury and one in Wakarusa, Ind.

The department found that the company had made payroll deductions for uniforms and uniform maintenance as well as for register shortages, and, in doing so, caused employees’ pay to fall below the minimum wage standards. The company also had made various unacceptable deductions from the pay of salaried employees and docked pay for sick time without having an established sick leave policy.

The FLSA requires that all covered employees be paid at least the federal minimum wage for all hours worked and overtime premium pay calculated at one and one-half an employee’s regular rate of pay for all hours worked in excess of 40 per week. An employer must also keep accurate records of employees’ wages, hours and other conditions of employment. The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional and outside sales employees. The employer will lose the exemption if it has an “actual practice” of making improper deductions from salary.

For more information, call the Department of Labor’s toll-free help line at (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov. Information about the current exemption for white collar executive and administrative employees can be found at http://www.dol.gov/fairpay.

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