Wage and Hour Division (WHD)

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RALEIGH, N.C. -- Cambridge Behavioral Health Services of Greenville, N.C., has agreed to pay $468,322 in back wages to 117 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division that found the company failed to properly pay employees for hours worked between May 2005 and May 2007.

The company failed to combine hours for purposes of calculating overtime for employees who performed two jobs during the same workweek. It also misclassified some employees as independent contractors. Employees who worked more than 40 hours in a workweek received only straight time rates for all hours worked and did not receive overtime payments as required under the Fair Labor Standards Act (FLSA).

“The Labor Department is committed to providing employers with clear and easy-to-access information on how to comply with federal employment laws, but employers must understand that the department will vigorously enforce the law to ensure that employees are paid all wages they are owed.” said Richard Blaylock, director of the Wage and Hour Division’s Raleigh District Office.

For purposes of the FLSA, there are a number of legal factors for determining whether an individual is an independent contractor or an employee. In this case, the Wage and Hour Division found that the company’s workers did not meet the criteria for independent contractor status. After the Wage and Hour Division explained the requirements of the law, the company agreed to pay all back wages owed the employees and to comply with the federal wage and hour law in the future.

Cambridge Behavioral Health Services uses counselors, community service employees and others to provide counseling and therapy services to patients in three group homes and outpatient facilities.

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 (866-487-9243) or contact the division’s Raleigh District Office at 4407 Bland Road, Suite 260; telephone 919-790-2742. 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.