Wage and Hour Division (WHD)

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ANDERSON, Ind. -- The U.S. Department of Labor has filed a legal action in federal district court in Indianapolis against EFM Associates Inc., doing business as La Charreada Inc. in Anderson, and Alvaro Montano, its operator and manager, for violations of the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA), seeking to recover back wages for 23 workers, plus an equal amount in liquidated damages.

An investigation conducted by the department’s Wage and Hour Division found that the business failed to pay workers the minimum wage and time and one-half their regular rates of pay for all hours worked in excess of 40 per week. The suit was filed when the company failed to comply with the terms of a compliance and payment agreement signed at the completion of that investigation.

The FLSA requires that employees be paid the federal minimum wage for all hours worked and time and one-half their regular rates of pay for hours worked beyond 40 in a week unless an employee is exempt from overtime pay. The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional and outside sales employees. To qualify for exemption, employees generally must meet certain job duty and salary tests. Employers must also maintain accurate time and payroll records.

Effective July 24, 2007, the federal minimum wage for covered nonexempt employees is $5.85 per hour. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009.

For more information on the FLSA, call the Department of Labor’s toll-free helpline at (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov. Information about the current exemption can be found on the Internet at http://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.