Wage and Hour Division (WHD)

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LAFAYETTE, La. -- LCS Correction Services in Lafayette has paid $265,056 in back overtime wages after an investigation by the U.S. Department of Labor’s Wage and Hour Division found 580 security guards had not been properly paid as required by the Fair Labor Standards Act (FLSA).

The investigation covering a two-year period determined that LCS, which has contractual agreements with Pine Prairie Correctional Center in Pine Prairie, La.; Caldwell Detention Center in Grayson, La.; South Louisiana Correctional Center in Basile, La.; and Evans Correctional Center in Newellton, La., violated overtime provisions of the FLSA by not correctly calculating overtime pay beyond 40 hours in a workweek.

“This investigation reflects the Labor Department’s commitment toward protecting the overtime rights of workers,” said Cynthia Watson, the Wage and Hour Division’s regional administrator in Dallas. “Some salaried employees were improperly classified as being exempt from overtime when, in fact, they were due compensation.”

LCS, a private security firm, cooperated with the investigation and back wages have been paid in full.

The FLSA requires that covered employees be paid at least the federal minimum wage of $5.85 for all hours worked, plus time and one-half their regular rates of pay for hours worked over 40 per week. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009. Under the law, employers must also maintain accurate time and payroll records.

The Labor Department’s Wage and Hour Division concluded 31,987 compliance actions and recovered more than $171 million in back wages for more than 246,000 employees in fiscal year 2006. Back-wage collections in fiscal year 2006 represent a 30 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 14 percent since fiscal year 2001.

For more information about the FLSA, call the Wage and Hour Division’s New Orleans District Office at 504-589-6171 or the Department of Labor’s toll-free helpline at 866-4US-WAGE (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.