Wage and Hour Division (WHD)

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DALLAS, TX -- Merritt Hawkins & Associates Inc., Irving, Texas, has paid $103,453 in back overtime wages after a U.S. Department of Labor investigation found that 69 former and current recruiters, research consultants, accounting clerks and administrative workers had not been properly paid.

“The Department of Labor is committed to enforcing the law to ensure that employees receive the wages they have earned,” said Cynthia Watson, Wage and Hour regional administrator in Dallas. “Workers’ overtime rights are further strengthened by our new overtime security rules, which increase protections for millions of workers by updating and clarifying the old regulations.”

The investigation, conducted by the department’s Wage and Hour Division, covered a two-year period from June 25, 2002 to June 24, 2004. Investigators determined that Merritt Hawkins had violated the overtime provisions of the Fair Labor Standards Act (FLSA) by incorrectly classifying employees as exempt and failing to properly pay overtime wages. Employees were paid a salary without any overtime compensation for hours worked over 40 in a workweek. In addition, the required recordkeeping was not maintained.

The company has paid the back wages and agreed to future compliance with the FLSA.

The FLSA requires that covered employees be paid the minimum wage of $5.15 per hour for all hours worked, plus time and one-half their regular rate of pay for hours worked over 40 per week. Employers must also maintain accurate time and payroll records.

The Wage and Hour Division recovered nearly $197 million in back wages in fiscal year 2004 for more than 288,000 workers. Average days to resolve a complaint decreased in fiscal 2004 from 108 to 92 days.

For more information about the FLSA, call the Wage Hour Dallas District Office at (817) 861-2150, metro number at (817) 261-4371 or the Department of Labor’s toll-free line at 1-866-4USWAGE (1-866-487-9243). Information is also available at www.wagehour.dol.gov and www.youthrules.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.