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.
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
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.