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April 17, 2003
621 Janitors to Receive Back Pay for Overtime
Precision Cleaning Services, a janitorial service, will pay $409,954.72 in back overtime wages to 621 employees following a Fair Labor Standards Act (FLSA) investigation conducted by the U. S. Department of Labor's Wage and Hour Division.

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The Northglenn, Colorado-based company contracts with retailers, including Wal-Mart, Kmart, Target, Home Depot, Rite-Aid and other stores in 10 states nationwide.

An investigator from the department's Wage and Hour district office in Denver contacted the firm in November 2002, according to Richard V. Habura, Wage and Hour district director in Denver. A subsequent investigation disclosed that janitorial workers were being paid straight time for all hours worked beyond 40 per week and that certain salaried supervisors were also entitled to overtime compensation.

Habura noted that the firm had no prior history of violations under the FLSA, so no additional penalties were assessed.

"It's especially important for low-wage workers to receive all the money they have earned," says U.S. Secretary of Labor Elaine L. Chao. "Precision Cleaning stepped up to the plate and cooperated with the Department of Labor to identify the employees who missed out on their overtime pay. The Department of Labor is also doing its part by proposing new rules to clarify when salaried workers should be paid overtime. "

The FLSA applies to all businesses with a gross annual dollar volume of $500,000 or more and to all employees whose duties engage them in the production of goods for interstate commerce or in activities closely related and directly essential to the production of goods for interstate commerce.

The law sets the federal minimum wage of $5.15 per hour and also requires that covered employees be paid overtime at time and one-half their regular rate of pay when they work more than 40 hours per workweek. The FLSA also contains recordkeeping requirements and child labor regulations.

 

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