Wage and Hour Division (WHD)

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ATLANTA -- United Drywall Inc. of Marietta, Ga., has agreed to pay $102,598 in back wages to 18 employees as a result of an investigation by the U.S. Department of Labor’s Wage and Hour Division.

Investigators determined that the employer violated the overtime provisions of the Fair Labor Standards Act (FLSA) when it failed to pay nonexempt employees proper overtime for hours over 40 per week. Workers were paid on a piece-rate system based on the number of sheets of drywall installed each week without additional compensation for hours over 40.

“Employers may choose to pay employees on a piece-rate or commission basis rather than a straight hourly rate, but they still must pay nonexempt employees overtime when the employees work more than 40 hours in a week,” said Janet Campbell, district director for the Wage and Hour Division’s office in Atlanta.

Overtime pay for employees covered by FLSA and paid on a basis other than a straight-time hourly rate is computed on the basis of the average hourly rate derived from such earnings. Overtime is calculated by dividing the total pay for employment in any workweek by the total number of hours actually worked.

Employers who are unsure whether a particular employment situation is covered by the FLSA or how to compute overtime earnings for employees working on a piece-rate or commission basis are encouraged to visit the department’s online overtime advisor at www.dol.gov/elaws/flsa.htm.

The Wage and Hour Division concluded 31,987 compliance actions and recovered more than $171 million in back wages for more than 246,000 employees in fiscal year 2006. Back-wage collections last year represent a 30 percent increase over back wages collected in fiscal 2001. The number of workers receiving back wages has increased by 14 percent since fiscal 2001.

For more information about the FLSA and other laws administered by the Wage and Hour Division, call the Department of Labor’s toll-free helpline at (866) 4US-WAGE (487-9243) or contact the division’s Atlanta District Office at 61 Forsyth Street, SW, Room 7T95; telephone (404) 893-4600. 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.