An investigation by the U.S. Department of Labor (DOL) led to the recovery of over $207,470 in back wages and damages for 157 workers after discovering a Michigan-based electrical services contractor did not pay proper overtime rates to workers at job sites in Arizona and Kentucky.
The DOL’s Wage and Hour Division (WHD) found that M.J. Electric LLC’s calculation of overtime pay for employees did not include non-discretionary bonuses in workers’ regular pay rate-violating the Fair Labor Standards Act (FLSA).
The FLSA establishes the legal framework for wage and hour practices, mandating covered employees to receive at least the federal minimum wage and overtime pay at one and a half times their regular rate for hours worked beyond 40 in a workweek. The law also requires that non-discretionary bonuses be included in the calculation of overtime pay for non-exempt employees.
The WHD initially identified overtime violations at the Tennessee Valley Authority’s Paradise Simple Cycle Project in Drakesboro, Kentucky, where M.J. Electric was contracted to perform electrical work. The investigation later expanded after similar violations were uncovered at another M.J. Electric project in Ehrenberg, Arizona.
This is not the first time that the DOL investigated M.J. Electric. In fact, the DOL found that the company violated federal law by not paying overtime on non-discretionary bonuses in 2018. Since this is a repeat FLSA violation, the DOL also assessed the company a $19,782 civil money penalty.
Employers unsure of their obligations are encouraged to contact the DOL for compliance assistance. The DOL also offers a search tool that lets employees check if they’re owed back wages recovered by the WHD.
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