Wage and Hour Division (WHD)

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KANSAS CITY, Mo. -- Marley Cooling Technologies located in Olathe and Overland Park, Kansas, has paid $354,950 in back wages to 62 employees who were not properly compensated for overtime as required by the Fair Labor Standards Act (FLSA). The company is a subsidiary of SPX, Inc., headquartered in Charlotte, N.C.

“Both today’s action and our new Overtime Security rules reflect our commitment to protecting overtime rights,” said Secretary of Labor Elaine L. Chao. “These employees weren’t receiving their rightful pay, and we are taking action to restore 354,950 to these workers. Overtime rights will be further strengthened by our new Overtime Security rules, which will increase pay protections for millions of workers by updating and clarifying the old regulations.”

The department’s Wage and Hour Division (WHD) conducted an investigation of the company that assembles, builds, and ships cooling towers. The investigation covered a two-year period between May 2001 and May 2003.

The department’s investigation found that the employer paid a straight salary for all hours worked without the half-time premium for hours worked in excess of 40 per week to those salaried workers who were not exempt from the overtime provisions of the FLSA. The back wages were calculated based upon an average of three-hours per week of overtime worked by the 62 employees.

The FLSA requires that covered workers be paid at least the federal minimum wage and one-and one half times their regular rates of pay for all hours worked over 40 in a single workweek. The law also requires employers to maintain adequate and accurate records of employees' wages, hours worked and other conditions of employment.

The Wage and Hour Division (WHD) recovered more than $212 million in back wages in fiscal year (FY) 2003, a 21 percent increase over the record setting amount of FY 2002. Average days to resolve a complaint decreased in FY 2003 from 129 days to 108 days. WHD assessed employers nearly $10 million in civil money penalties in FY 2003.

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

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