Wage and Hour Division (WHD)

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SAN FRANCISCO -- Hawaii Planing Mill agreed to pay $124,315 in overtime back wages to 82 employees who were improperly classified as exempt from overtime pay under the Fair Labor Standards Act (FLSA). The U.S. Labor Department also assessed a civil penalty of $1,320 for a child labor law violation.

An investigation by the department’s Wage and Hour Division determined that the employees who did not receive overtime pay, most of whom sold building materials and supplies, are eligible for overtime for hours worked in excess of 40 in a workweek. The remaining workers also performed non-exempt work. The FLSA requires employers to pay covered, non-exempt employees the minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 per week.

The department also fined the company $1,320 for allowing a 17-year-old worker to use a nail gun and operate a forklift, violating federal rules prohibiting minors under 18 from using hazardous equipment on the job.

“This action reflects the Department of Labor’s commitment to protecting overtime rights and ensuring that workers receive the wages they have earned,” said George Friday Jr., regional administrator of the Wage and Hour Division, San Francisco. “The company’s cooperation is a model for others in resolving overtime pay issues amicably, with the common goal of compliance.”

Hawaii Planing Mill and its president, Michael Fujimoto, worked with the department to resolve the issues identified in the investigation and pay the back wages. The employees, who worked at four company locations on the island of Hawaii and one location on the island of Oahu, will receive back pay for work performed between January 2003 and June 2005.

The Wage and Hour Division, which recovered nearly $200 million in back wages in fiscal year 2004 for more than 288,000 workers, offers a user-friendly Web site to help employers properly pay and classify their employees. Employers and employees can visit www.wagehour.dol.gov for more information about the FLSA, including an on-line tool for determining overtime eligibility -- the elaws FLSA Overtime Security Advisor -- at www.dol.gov/elaws/overtime.htm.

Information about the FLSA is also available from the Hawaii Wage and Hour office at (808) 541-1361 or the Department of Labor's toll-free help line at 1-866-4US WAGE (1-866-487-9243).

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