Allied Home Mortgage Corp. in Houston has paid $1,855,518 in back wages after the U.S. Department of Labor's Wage and Hour Division accused the company of violating the Fair Labor Standards Act (FLSA) by failing to pay an overtime premium to commission-only employees.

The department says that the company cooperated with the investigation by conducting a self-audit and has agreed to future compliance. Back wages have been paid in full to 588 branch managers, loan officers, loan processors and clerks, who were performing inside sales work at the company.

The FLSA requires employees to be paid minimum wage for all hours worked and time and one-half their regular rates of pay for hours worked over 40 per week. Employers must also maintain accurate time and payroll records.

Earnings may be determined on a piece-rate, salary, commission or some other basis, but in all such cases the overtime pay due must be computed on the basis of the average hourly rate derived from such earnings. The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional and outside sales employees.