Wage and Hour Division (WHD)

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KANSAS CITY, MO. -- North American Savings Bank, F.S.B., with locations in Grandview and Overland Park, Ks. has paid $141,136 in back wages due to 70 of their employees who had been improperly compensated under the Fair Labor Standards Act (FLSA). The back wage payments are the result of an investigation by the U.S. Department of Labor’s Wage and Hour Division.

“Our action today and the new Overtime Security rules reflect our commitment to protecting overtime rights and effective enforcement of the minimum wage provision of the law,” said Secretary of Labor Elaine L. Chao. “These employees were not receiving their rightful pay and we took action to recover $l41,136 due to them. The new Overtime Security rules will increase pay protections for millions of workers by updating and clarifying the old regulations.”

The Wage and Hour Division investigated the Mortgage Loans by Internet Department at both bank locations. Investigators found that loan consultants and underwriters were paid straight commissions on sales. However, the commissions did not always yield the FLSA minimum wage requirements for all hours worked. Moreover, the employees did not receive time-and-one-half for hours worked in excess of 40 per week as required by FLSA.

The FLSA requires that covered workers be paid at least the federal minimum wage and one-and one half times their regular rate 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 and hours worked.

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 requirements, 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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