Wage and Hour Division (WHD)

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LEHI, Utah -- Classic Drywall Systems Inc., Lehi, Utah, has paid $72,392 in overtime back wages to 77 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division.

“This investigation reflects the department’s commitment to protecting the overtime rights of workers and ensuring that workers receive the full wages they have earned,” said Dean A. Campbell, Wage and Hour district director in Salt Lake City. “In this case, we recovered $72,392 in back wages for these workers.”

The employer violated the overtime provision of the Fair Labor Standards Act (FLSA) by not including incentive pay as part of the regular rate of pay when overtime was calculated. The firm paid an incentive for working out of town. “Employers must make sure they properly calculate the employees’ regular rate of pay or overtime premiums will not be computed accurately,” added Campbell.

The firm agreed to future compliance and payment of all back wages due.

The law, enforced by the Wage and Hour Division, requires that employers pay covered workers at least the federal minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 in a single workweek. Employers must also maintain adequate and accurate records of employees’ wages, hours and other conditions of employment.

The Wage and Hour Division concluded 34,858 compliance actions and recovered more than $166 million in back wages for over 241,000 employees in fiscal year 2005. Back wage collections this past year represent a 26 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 11 percent since fiscal year 2001.

For more information about the FLSA, call the Department of Labor's toll-free help line at 1-866-4USWAGE (1-866-487-9243) or contact the Salt Lake City District Office at (801) 524-5706. 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.