Wage and Hour Division (WHD)

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SPRINGDALE, Ark. -- United Bank in Springdale, Ark., has agreed to pay $120,309 in back wages after an investigation by the U.S. Department of Labor’s Wage and Hour Division found 28 current and former mortgage loan officers did not receive minimum wage and overtime pay as required by the Fair Labor Standards Act (FLSA).

The investigation, covering the two-year period May 29, 2004 to May 27, 2006, determined that United Bank, a subsidiary of United Holding Co. in Springdale, misclassified employees as exempt from overtime when, in fact, they were due overtime compensation. Additionally, commissions paid were not adequate to meet the minimum wage requirement. The company also failed to keep adequate payroll records.

“Workers are entitled to be paid their full wages for all hours worked,” said Cynthia Watson, Wage and Hour Division southwestern regional administrator. “In this case, the company failed to pay its employees overtime for hours worked over 40 in a workweek. This practice is illegal.”

United Bank has agreed to future compliance with the law.

The FLSA requires that covered employees be paid at least the federal minimum wage for all hours worked, plus time and one-half their regular rates of pay for hours worked more than 40 per week, unless otherwise exempt. 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, professional and outside sales employees. To qualify for exemption, employees generally must meet certain job duty and salary tests.

For more information about the FLSA, call the department’s toll-free help line at (866) 4US-WAGE (487-9243); visit the Internet at www.wagehour.dol.gov; or contact the Wage and Hour Division’s Little Rock District Office at (501) 223-9114. Information about the current exemption for white collar executive and administrative, employees is available at www.dol.gov/fairpay.

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