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May 20, 2004
Las Vegas Cable Installers Receive $141K in Back OT

MC Communications, Inc., a Las Vegas cable television installation contractor, has paid $141,495 in back wages to 181 employees to settle allegations that the company miscalculated overtime by failing to include production bonuses in overtime calculations.

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An investigation by the Labor Department's Wage and Hour Division determined that MC Communications, Inc. incorrectly calculated overtime wages for employees working as many as 70 hours per week in some cases. In addition, the employer did not maintain accurate records of all hours worked, according to the department.

The Fair Labor Standards Act (FLSA) requires that employees be paid one-and-one-half times their regular rate of pay for hours worked over 40 per week. Under the federal FLSA, bonus payments must generally be included in the calculation of a worker's hourly rate when figuring the overtime premium. The department accused the company of violating the FLSA by failing to add the production bonuses that workers routinely earned to the regular rate of pay before making the overtime calculations.

The back wages will compensate cable installers for work performed during the two-year period ending in December 2003. All employees have been paid in full, according to the department.

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