The United States Department of Labor has ordered an Arizona cable installation company to pay 246 current and former employees a total of $350,150 in back wages after failing to pay them overtime rates, as required by federal law.
An investigation of End 2 End Communications by the U.S. Department of Labor’s Wage and Hour Division found the Gilbert-based company paid field technicians on a per-task basis for all installations without regard to the number of hours they worked. For example, a technician performing enough tasks to earn $500 was paid that amount — whether it took 30 or 50 hours. As a result, the employer failed to pay legally required overtime at time and one-half for each hour worked beyond 40 in a workweek, in violation of the Fair Labor Standards Act.
Commonly, cable installation industry employers do not pay overtime to employees who work long hours in the field. Employees paid on a commission are still entitled to overtime for hours worked beyond 40 per week. Employers who don’t pay workers correctly should take note of this case.
End 2 End Communications, signed a consent judgment and agreed to ensure future compliance with federal labor law and pay the back wages. As part of its agreement, End 2 End Communications has notified current and former employees of the case’s resolution and redesigned the company’s payroll system to ensure that all overtime-eligible employees receive pay stubs that properly record the wages paid for overtime hours worked. The employer also provided companywide training on the updated payroll system and on workers’ rights under the FLSA and included a reference to the Wage and Hour Division in employee handbooks.
The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. The FLSA provides that employers who violate the law are liable to employees for back wages and an equal amount in liquidated damages.
