Wage and Hour Division (WHD)

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HAWTHORNE, N.J. -- Perennial Lawn Care has agreed to pay $22,267 in back wages due 14 employees after a U.S. Department of Labor investigation found the company in violation of the Fair Labor Standards Act (FLSA). The Hawthorne landscaping company provides services to clients throughout New Jersey.

An investigation conducted by the department’s Wage and Hour Division determined that, over a two-year period, the company paid hourly employees straight time for all hours worked, resulting in overtime violations. The company also failed to maintain required records.

“Perennial Lawn Care employees were not paid the proper overtime premium when they worked more than 40 hours in a workweek,” said Joe Petrecca, director of the Wage and Hour Division’s Northern New Jersey District Office. “We are committed to ensuring that all workers are paid the proper wages in accordance with the law.”

After the Wage and Hour Division explained the law’s requirements, the company agreed to pay all back wages owed the employees and to comply in the future.

The FLSA requires covered, nonexempt employees to be paid the federal minimum wage for all hours worked and time and one-half their regular rates of pay for hours worked beyond 40 in a week. To calculate overtime, employers must count the earnings from all rates of pay and add them together. This total is then divided by the total number of hours worked at all jobs. Employers must also maintain accurate time and payroll records.

The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional and outside sales employees. To qualify for exemption, employees generally must meet certain job duty and salary tests. Information about the current exemption can be found on the Internet at www.dol.gov/fairpay.

Effective July 24, 2007, the federal minimum wage for covered, nonexempt employees is $5.85 per hour. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009. For more information about the FLSA, call 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.