Wage and Hour Division (WHD)

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STAFFORD, Texas -- The U.S. Department of Labor announced today that Sehgal and Sons Enterprises LP, doing business as Ultra Building Services Inc. in Stafford, Texas, has agreed to pay 301 current and former janitorial workers $125,000 in back wages due as the result of violations of the Fair Labor Standards Act (FLSA).

“All workers are entitled to receive their full wages, including any overtime wages earned,” said Cynthia Watson, regional administrator for the department’s Wage and Hour Division in Dallas. “In this case, the company misclassified employees as independent contractors and failed to pay them the required minimum wage of $5.15 per hour and time-and-one-half overtime pay when they worked over 40 hours in a week. This is unacceptable.”

The investigation by the Wage and Hour Division’s Houston district office covered the two-year period Jan. 19, 2003 to Jan. 15, 2005. Ultra Building Services, which provides janitorial services to office buildings throughout the Houston metropolitan area, cooperated in the investigation and has agreed to future compliance. Back wages have been paid in full.

The FLSA requires employers to pay workers the minimum wage for all hours worked and 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.

For more information about the FLSA, call the Wage and Hour Houston district office at (713) 339-5500 or the Department of Labor’s toll-free help line at 1-866-4USWAGE (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.