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ESA News Release: [05/04/2006]
Contact Name: Jo Anne Burgoyne
Phone Number: (404) 562-2076
Release Number: 06-0722-ATL

U.S. Labor Department Recovers More Than $1 Million in Back Overtime Wages for Nearly 3,000 Compass Bank Employees

BIRMINGHAM, Ala. — Compass Bank, headquartered in Birmingham, Ala., has agreed to pay 2,961 employees $1,036,236 in back overtime wages after an investigation by the U.S. Labor Department"s Wage and Hour Division determined the company had violated the Fair Labor Standards Act (FLSA).

"This administration is committed to ensuring that workers are paid all the wages they have earned," said U.S. Secretary of Labor Elaine L. Chao. "Because of the department"s actions, the workers in this case will receive over one million dollars in back wages and steps have been taken to make certain that overtime will be properly compensated in the future."

Wage and Hour investigators found that from September 2003 to August 2005, tellers, customer service representatives and financial service representatives at branch locations in Alabama, Florida, Colorado, Texas, New Mexico and Arizona routinely worked through lunch periods and after finishing scheduled work hours.

The unpaid work time, which was spent balancing accounts, preparing required paperwork, attending meetings and calling customers, resulted in employees often working more than 40 hours in a work week. These extra work hours resulted in uncompensated overtime violations. The bank reportedly failed to record this work time or compensate workers.

Wage and Hour Division investigators conducted investigations at several bank branches in Alabama. These investigations led to other locations throughout the company where similar violations occurred. Bank officials cooperated during the investigation and agreed to reimburse all affected employees and to change procedures to ensure future compliance.

The FLSA requires that covered workers be paid at least the applicable minimum wage and one-and-one-half times their regular rate of pay for all hours worked over 40 in a single work week. Employers must also maintain accurate records of employees" wages, hours and other conditions of employment.

For more information about the FLSA, and other laws administered by the Wage and Hour Division, call the department"s toll-free help line at 1-866-4USWAGE (1-866-487-9243), visit the Wage and Hour Division Web site at www.wagehour.dol.gov, or contact the Gulf Coast district office at 955 22nd St. N., Suite 656, Birmingham, Ala.; (205) 731-1305.

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