The U.S. Department of Labor recently announced that Las Vegas gypsum board contractor Spectrum Construction LLC is required to pay a total of $824,276 in unpaid wages and compensation to 680 employees for violating the Fair Labor Standards Act (FLSA). The investigation found that the company failed to pay overtime pay to piece-rate wages and hourly workers, and did not pay 1.5 times the normal wage to employees who worked more than 40 hours per week as stipulated by law.
The investigation by the Division of Wages and Hours of the Labor Department pointed out that Spectrum Construction did not pay any overtime wages to piece-rate workers, deposited the overtime hours of hourly workers in the bank, and later replaced the compensation with paid leave, or even did not pay at all. The FLSA clearly stipulates that all non-exempted employees who work more than 40 hours per week must receive overtime pay, regardless of how their salary is calculated. As the violation was intentional, the company was also fined $10,060 in civil terms.
Spectrum Construction specializes in gypsum board, metal stud frame and painting works for residential and commercial buildings in Nevada. This case highlights the strict supervision of employers’ compliance with labor laws by the Department of Labor, aiming to ensure that employees receive legal compensation. The outstanding wages recovered this time will be fully paid to the affected employees.
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