Wage and Hour Division (WHD)

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SEATTLE -- As a result of a second investigation by the U.S. Department of Labor (DOL), Oso Lumber and Hardware of Arlington,Wash., and its president Michael Cook have agreed to pay $101,816 in back wages to 33 of their employees for violations of the federal Fair Labor Standards Act (FLSA).

In addition to the payment of back wages, the employer agreed to pay $71,271 in liquidated damages and agreed to an injunction against future violations under terms of a consent judgment filed in U.S. District Court, according to Donna Hart, Seattle district director for the DOL’s Wage and Hour Division. Liquidated damages are provided to compensate employees who are not properly paid at the time their wages were due. The employer operates lumber yards and retail/wholesale hardware stores at multiple locations in Western Washington.

Hart explained that the company violated the overtime laws by misclassifying inside sales staff and truss designers as exempt under federal law and paying them a salary for all hours worked with no compensation for overtime hours. The company also violated the FLSA by improperly calculating bonuses into the pay of three other workers paid hourly. The department’s investigation covered the period from May 3, 2003, to April 26, 2006.

Under the FLSA, covered employers are required to pay workers at least time and one-half the regular rate of pay for all hours worked over 40 in a workweek. Employers must also maintain adequate and accurate time and payroll records.

The Wage and Hour Division recovered more than $166 million in back wages in fiscal year 2005 for more than 241,000 workers. For more information about the FLSA, call the Seattle Wage and Hour Office at 206-398-8039 or the department’s toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available at www.wagehour.dol.gov.

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