VCI Telecom, Inc. has agreed to pay $1,074,375 in back wages to 227 employees
as part of a settlement with the U. S. Department of Labor. The agreement settles
charges that the company violated the overtime pay provisions of the Fair Labor
Standards Act (FLSA).
An investigation by the Labor Department's Wage and Hour Division revealed
that the company failed to pay employees overtime rates of at least one and
one half times their regular pay rates for hours over forty worked in a work
week, as federal law requires. The employees worked laying and installing cable
in Los Angeles, San Bernardino, Riverside, Ventura and Orange counties.
"The Labor Department is committed to ensuring that workers are paid for
all the hours worked, including overtime, through compliance assistance and
strong enforcement," says U.S. Secretary of Labor Elaine L. Chao. "Most
employers comply with our laws, but we will aggressively enforce the law if
an employer purposefully avoids paying workers overtime when due."
VCI, based in Upland, Calif., agreed to pay back wages for the period September
10, 2000 through March 10, 2002. The amount of back wages recovered ranged from
$24 to $31,271.