Wage and Hour Division (WHD)

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KING OF PRUSSIA, Pa. -- Moon Site Management Inc. will pay $59,935 to 17 of its landscapers after a U.S. Department of Labor investigation discovered overtime violations of the Fair Labor Standards Act (FLSA). The King of Prussia company provides landscaping and snow removal services.

The investigation, conducted by the department’s Wage and Hour Division district office in Philadelphia, revealed that the company paid landscapers straight time for hours worked in excess of 40 per week. The investigation also revealed that the company docked employee pay for any time missed in a workweek, although the employees were considered salaried employees.

“Moon Site employees were not paid the proper overtime premium when they worked more than 40 hours in a workweek,” said Stewart Bostic, the Wage and Hour Division’s district director in Philadelphia. “It’s important that employers fully understand their obligations under the law to ensure all employees are compensated properly.”

After the Wage and Hour Division explained the law’s requirements, Moon Site Management agreed to pay all back wages owed to employees. In addition, the company agreed to give its employees a guaranteed salary, and pay the time and one-half premium for all hours worked in excess of 40 each week.

The FLSA requires covered, nonexempt employees to 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. In addition, nonexempt employees who are paid commissions or salaries must receive at least the minimum wage and overtime premiums, just as employees who are paid by the hour or by the piece are paid. 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, employees generally must meet certain job duty and salary tests. Information about the current exemption can be found on the Internet at www.dol.gov/fairpay.

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 about 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.

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