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February 12, 2007
Utah Business Owner Pleads Guilty to Willful OT Violations

A co-owner of a drywall company in Logan, Utah, has pleaded guilty to criminal misdemeanor charges for repeated and willful violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA), the U.S. Department of Labor's Wage and Hour Division announced.

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Federal Magistrate Judge Brooke Wells sentenced Dennis Kim Pitcher, co-owner of Construction Associates Inc., doing business as KRT Drywall, to 60 months of probation, a $3,000 fine, 300 hours of community service, and restitution of $152,597 in back wages to 134 employees. Pitcher also was ordered to comply with all local, state, and federal laws, including the FLSA.

Construction Associates Inc. was sentenced to 60 months probation and was ordered to pay a $10,000 fine, to comply with all rules applicable to companies obtaining business licenses in Utah, and to pay back wages due to employees jointly with Pitcher.

The company's former bookkeeper, Ludean Parkin, was sentenced to 24 months probation, ordered to pay a $1,000 fine and serve 150 hours of community service after pleading guilty to violations of the of recordkeeping provisions of the FLSA.

The criminal action against the defendants ended a five-year Wage & Hour Division compliance action. The case was presented to the U.S. Attorney's office for prosecution alleging the defendants made numerous false statements and provided falsified records indicating that employees were paid overtime back wages when in fact they were not.

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