Wage and Hour Division (WHD)

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NEW ORLEANS -- ICF Emergency Management LLC, headquartered in Fairfax, Va., and Quadel Housing Services Inc., headquartered in Washington, D.C., has paid a total of $225,275 in back wages to 399 current and former housing advisors. An investigation by the U.S. Department of Labor’s Wage and Hour Division found that these workers were not properly paid in the wake of Hurricane Katrina as required by the Fair Labor Standards Act (FLSA).

“The employer misclassified the housing advisors as exempt from minimum wage and overtime under the Labor Department’s regulatory administrative exemption. However, these workers did not exercise independent judgment and discretion in the performance of their duties and therefore were entitled to overtime compensation,” said Cynthia Watson, regional administrator for the Wage and Hour Division’s Southwest Region.

The investigations determined that these private contractors, hired by the state of Louisiana to administer recovery and rebuilding “Road Home” grants to property owners, misclassified the housing advisors and failed to pay the required overtime wages. ICF Emergency Management failed to pay 225 current and former employees $194,880. Quadel Housing Services failed to pay 174 current and former employees $30,395.

The FLSA requires that covered, nonexempt 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 beyond 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 companies cooperated with the investigation and all back wages have been paid in full.

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. Information on the regulatory overtime exemptions is available at www.dol.gov/fairpay.

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