29 Jul

California construction contractor to pay $292,184 in overtime back wages following US Department of Labor investigation



WEST COVINA, Calif. — GM Sager Construction Inc. has agreed to pay $146,092 in overtime back wages and an equal amount in liquidated damages to 26 workers after an investigation by the U.S. Department of Labor found the Pomona, Calif.-based concrete and asphalt paving contractor in violation of the Fair Labor Standards Act’s overtime and record-keeping provisions. The employer also agreed to record all hours worked accurately, including travel time.

“Employers must record and pay for all hours of work,” said Daniel Pasquil, director of the Wage and Hour Division’s West Covina District Office. “This includes travel time between work sites. We urge all employers to review their pay practices to ensure compliance.”

Investigators established that GM Sager Construction Inc. failed to pay 26 employees for their travel time between the last job site to the company’s yard at the end of each day and for work once employees returned to the yard. The employer failed to record and count this time as hours worked.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour. Earnings may be determined on a piece-rate basis, but overtime pay must be computed using the employee’s average hourly rate. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law.