Wage and Hour Division (WHD)

Printer-Friendly Version

Press Releases

MILWAUKEE, Wis. --

The U.S. Labor Department has recovered $96,875 in overtime back wages for 228 workers employed by Direct Supply Inc. Milwaukee, after an investigation by the department’s Wage and Hour Division determined the company had violated the overtime pay and youth employment provisions of the Fair Labor Standards Act (FLSA).

“The department is committed to ensuring that all workers receive the overtime wages that they have earned,” said Jose L. Medina, director of the Wage and Hour Division district office in Minneapolis.

The investigation covered the period from August 2004 to August 2006. It established that the medical supply company failed to include bonuses paid to employees when computing regular rates for overtime pay and failed to pay overtime to some employees during a three month training period. Direct Supply also paid $990 in youth employment penalties involving two minors under 16 who worked in violation of hours and time standards.

The FLSA requires that all covered employees be paid at least the federal minimum wage for all hours worked and overtime premium pay, calculated at one and one-half the employee’s regular rate of pay, for all hours worked in excess of 40 per week. Non-discretionary bonuses and incentive pay must be added to straight-time earnings to correctly calculate the additional overtime compensation. An employer must also keep accurate records of employees' wages, hours, and other conditions of employment.

The youth employment provisions of the FLSA allows 14- and 15-year olds to work outside school hours, but not later than 7 p.m. (9 p.m. from June 1 until Labor Day) and for no more than three hours on school days or 18 hours during school weeks. These minors may work up to eight hours on non-school days or 40 hours during non-school weeks.

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

For more information, call the Department of Labor’s toll-free help line at 1 (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

###

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.