Wage and Hour Division (WHD)

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COLUMBUS, Ohio --

The U.S. Department of Labor today filed legal action against two Columbus, Ohio- area, corporations doing business as Jericho Mortgage for alleged violations of the minimum wage, overtime pay and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The court petition was filed to recover $220,786 in back wages and an equal amount in liquidated damages on behalf of 54 employees.

The complaint, filed against Double Eagle Financial Corp., Lancaster, Ohio, and Platinum Brokerage Ltd., Gahanna, Ohio, followed an investigation by the department’s Wage and Hour Division. The investigation, which covers the companies’ pay practices from May 2003, found that the employer failed to: pay the minimum wage rate, pay overtime compensation for hours worked in excess of 40 per week and maintain an accurate record of hours worked. Also named in the lawsuit is Rodney K. Cotner, owner of both corporations. The 54 employees worked as loan officers or sales managers on a commission basis. During pay periods in which the employees closed no sales, they received no pay.

The Fair Labor Standards Act requires employers to pay employees the federal minimum wage for all hours worked and time and one-half the regular rate of pay for hours worked over 40 in a week unless the employee is exempt from overtime pay. Employers must also maintain accurate time and payroll records.

For more information, call the Department of Labor’s toll-free help line at 1-866-4USWAGE (1-866-487-9243) of visit the Internet at www.wagehour.dol.gov. Information about the current exemption for while-collar executive, administrative and professional employees can be found on the Internet at www.dol.gov/fairpay. The Labor Department also offers a user-friendly Web site to help employers properly pay and classify their employees and an on-line tool for determining overtime eligibility called the elaws FLSA Overtime Security Advisor which can be found at www.dol.gov/elaws/overtime.htm.

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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.