Wage and Hour Division (WHD)

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SAN FRANCISCO -- Grounds Maintenance Services, Inc., located in Newbury Park, Calif., paid $40,600 in back wages to 92 employees following a U.S. Department of Labor investigation which found that employees were not paid overtime as required by federal law.

"The Department of Labor is committed to strong enforcement of the law to ensure that all workers, particularly those in low-wage jobs, are paid for all overtime hours worked," said George Friday, regional administrator of the Wage and Hour Division. "We are pleased that the department was able to recover more than $40,000 in overtime wages for these workers."

The Wage and Hour Division's investigation found that Grounds Maintenance Services, Inc. paid employees a fixed hourly wage, in cash, for all hours worked. The Fair Labor Standards Act (FLSA) requires that employees be paid one-and-one-half times their regular rate of pay for work hours in excess of 40 per week. In addition, the firm did not keep accurate payroll records and time sheets.

The affected employees were engaged in landscape construction including erosion control, tree care, weed and pest control, and irrigation system installation and repair. The back wages compensated them for work performed during the two-year period ending March 10, 2002. The company has agreed to comply with federal wage and hour laws in the future.

The Wage and Hour Division (WHD) recovered more than $212 million in back wages in fiscal year (FY) 2003 -- a 21 percent increase over the record setting amount in FY 2002. Average days to resolve a complaint decreased in FY 2003 from 129 days to 108 days. WHD assessed employers nearly $10 million in civil money penalties in FY 2003.

For more information about the FLSA, call the Los Angeles Wage and Hour office at (213) 894-6375 or the Department of Labor's toll-free help line at 1-866-4US WAGE (1-866-487-9243). 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.