Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Copy of Overtime Primer: Highlights from the New Regulations

The federal DOL overtime regulations go into effect this year. Are you ready?

Download Now!

This report includes a summary of key changes, including the salary level test and salary basis test.

As a bonus, we've included a handy flowchart to help you determine exemption status under the FLSA.

Download Now!
February 07, 2008
Food Wholesaler Agrees to Pay $1.5M to Settle FLSA Complaint

McLane Co., Inc., has agreed to pay $1,559,316 in back wages to 570 current and former retail merchandising specialists after the Department of Labor accused the company of misclassifying the workers as exempt employees.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

The Department of Labor said that McLane Co., a wholesale distributor of food and grocery products, erroneously regarded retail merchandising specialists as outside sales employees exempt from FLSA coverage. The department also accused the company of failing to keep records of hours worked.

The department says that the company cooperated with the investigation and has agreed to pay back wages in full.

The FLSA requires that covered employees be paid at least the federal minimum wage of $5.85 an hour for all hours worked, plus time and one-half their regular rates of pay for hours worked over 40 per week, unless otherwise exempt. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009. Under the law, employers also must maintain accurate time and payroll records.

To qualify for the outside sales employee exemption, an employee's primary duty must be making sales (as defined in the FLSA), or obtaining orders or contracts for services or the use of facilities for which a consideration will be paid by the client or customer; and the employee must be customarily and regularly engaged away from the employer's place or places of business.

Featured Special Report:
Top 100 FLSA Overtime Q&As
Twitter  Facebook  Linked In
Follow Us
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: