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 Printer-Friendly Version
ESA-WHD New Release: [02/10/2000]
Contact Name: Brad Mitchell or Juan Solano
Phone Number: (312) 353-6976
Release Number: V-93
LIFE TIME FITNESS INC., EDEN PRAIRIE, MINN., AGREES TO PAY $102,120 TO 286 WORKERS FOR OVERTIME PAY VIOLATIONS
Chicago — A chain of fitness centers in the Twin Cities area has agreed to pay $102,120.37 for overtime pay violations found by the U.S. Department of Labor.
The Labor Department's investigation found that Life Time Fitness Inc. did not pay 286 workers according to the Fair Labor Standards Act, the federal wage-hour law. The wages paid to workers who were paid commissions did not meet the requirements for exemption from overtime pay during some weeks. The firm also did not keep an accurate record of hours worked by employees. The violations occurred during April 1996 through April 1998.
Wage and Hour District Director Denise Scharlemann in Minneapolis said, "Life Time Fitness Inc. has agreed to comply with the federal overtime law in the future and has calculated back pay owed to employees."
Retail and service firms that meet certain conditions do not have to pay overtime pay on commissions paid to employees. Seventy-five percent or more of the establishment's total annual sales must not be for resale. The sale of goods or services must also be recognized as a retail sale or service in the particular industry.
Workers at the retail and service establishment are exempt from overtime pay if two conditions are met. First, more than 50% of the employee's total earnings in a representative period must come from commissions. The representative period must be at least one month. Second, the employee must be paid more than one and one-half times the minimum wage for every hour in a workweek that exceeds 40 hours.
The Labor Department's investigation revealed that commissions paid to sales workers and personal trainers did not meet all of the required conditions. Life Time Fitness Inc. was required to pay time and one-half pay to employees who worked over 40 hours in a week.
Life Time Fitness Inc. is headquartered at 6442 City West Parkway, Eden Prairie. The firm has health and fitness centers in Brooklyn Park, Eagan, Woodbury, Roseville, St. Paul, Coon Rapids, Bloomington, and Plymouth.
The Labor Department's Wage and Hour Division enforces the Fair Labor Standards Act. The law sets a federal minimum wage of $5.15 for most workers and generally requires overtime pay for hours worked over 40 in any workweek. The federal law also requires employers to keep adequate time and payroll records.
The investigation was conducted by the Wage and Hour District Office, Midland Square, 331 Second Avenue South, Minneapolis.
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