Wage and Hour Division (WHD)

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CHARLOTTE, N.C. -- Heaven and Earth Landscaping has paid $52,240 in back wages and penalties following a determination by the U.S. Department of Labor’s Wage and Hour Division that the Indian Trails, N.C., company violated provisions of the Fair Labor Standards Act (FLSA).

“When creating a new compensation system, employers must be sure their pay plans meet the requirements of federal labor laws,” said Maxine Mills, acting director of the Wage and Hour Division’s Charlotte District Office. “The Wage and Hour Division maintains a compliance assistance Web site that provides easy-to-access information on federal employment rules.”

Wage and Hour Division investigators discovered that when the employer paid employees a piece rate for putting out landscaping material at customer locations, 187 employees did not receive overtime pay when they exceeded 40 hours in a workweek. The employer agreed to pay $31,670 in back wages to these employees.

In addition, the Wage and Hour Division assessed $20,570 in penalties against the company because it had been cited for similar violations in 2004.

The FLSA requires covered employees to be paid at least the federal minimum wage for all hours worked and time and one-half their regular rates of pay for hours worked over 40 per week. Earnings may be determined on a piece rate, salary, commission or some other basis, but in all such cases the overtime pay due must be computed on the basis of the average hourly rate derived from such earnings.

The Labor Department’s Wage and Hour Division concluded 30,467 compliance actions and recovered a record $220 million in back wages for more than 341,000 employees in fiscal year 2007. Back-wage collections in fiscal year 2007 represent a 67 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 58 percent since fiscal year 2001.

Information about the FLSA is available through the department’s toll-free helpline at 866-4US-WAGE (487-9243); on the Internet at www.wagehour.dol.gov; or by contacting the Wage and Hour Division office in Charlotte, 800 Briar Creek Road, Suite CC-412; telephone: 704-344-6302.

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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.