Wage and Hour Division (WHD)

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BUFFALO, N.Y. -- The U.S. Department of Labor has sued Security Credit Systems Inc. of Buffalo, and company president and owner Angelo J. Travale Jr. for alleged violations of the overtime and recordkeeping provisions of the federal Fair Labor Standards Act (FLSA).

An investigation by the department’s Wage and Hour Division found that approximately 116 employees working at the company’s debt collection business were required to work more than 40 hours during many weeks without being compensated properly for the overtime hours worked. The investigation also found that the company did not keep proper records of the number of hours employees worked.

The FLSA requires that covered employees be paid at least the federal minimum wage as well as one and one-half times their regular rates of pay for hours worked over 40 per week. The law also requires that accurate records of employees’ wages, hours and other conditions of employment be maintained.

“This legal action by the Labor Department demonstrates that we will not hesitate to file suit against employers who violate the law by failing to properly pay their employees for all the hours they work,” said Michael Fitzgerald, assistant district director for the Wage and Hour Division in Buffalo.

The Labor Department’s lawsuit, filed with the U.S. District Court for the Western District of New York, charges the defendants with willful violations of the overtime and recordkeeping provisions of the FLSA since April 2, 2005. The suit asks the court to permanently enjoin the defendants from future violations of the law and to order them to pay employees overtime back wages due, along with an equal amount in liquidated damages or prejudgment interest.

The Buffalo District Office of the Wage and Hour Division conducted this investigation, and the department’s suit was filed by its Regional Solicitor’s Office in New York City. For more information about the provisions of the FLSA, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243) or contact the division’s Buffalo office at 716-842-2950. Information is also available on the Internet at www.wagehour.dol.gov.

Chao v. Security Credit Systems Inc. et al

Civil Action Number: 08-CV-267

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