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Digital News Report – The US Department of Labor (DOL) announced that Levi Strauss & Co. agreed to pay $1,011,413 to 596 employees for overtime back wages. The DOL said that Levi Strauss violated overtime and record keeping rules that are part of the federal Fair Labor Standards Act.
The DOL San Francisco District Office investigated the company and found that they misclassified several groups of workers. These jobs included assistant store managers who were being treated as exempt from overtime compensation while others that were newly hired were not exempt.
Levi Strauss didn’t record all hours the employees worked in the company’s payroll system which was also a problem. The assistant store managers were working off the clock if the store closed late or opened early. They also filled in when there was employee shortages.
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The DOL determined that the back wages owed covered a two-year time period. Levi Strauss agreed with the DOL to pay the back wages and also to correct their time and attendance record keeping system. Now these employees that will be compensated for overtime back wages will be non-exempt because of the Fair Labor Standards Act.
The Fair Labor Standards Act says that employees are to be paid the federal minimum wage of $7.25 for all hours worked. If the employee works over 40 hours in a week, they are to be paid the hourly wage plus one half the regular rate, which includes commissions, bonuses, and incentive pay. Employers must also have accurate records for employees that are non-exempt. Exempt employees are those that are truly executive, administrative, professional, and outside sales people. Some exemptions are included with some computer employees. There are certain guidelines that must be met to qualify for exemptions of this rule.
To learn more about the Fair Labor Standards Act visit http://www.dol.gov/whd.
By Victoria Brown