The federal government has cracked down on eight construction and logistics companies nationwide so far in August for abusing overtime rules, imposing nearly $5 million in fines on six firms and filing suit against two firms with previous offenses, Department of Labor (DOL) announcements show.
The most recent case was reported Aug. 25, in which DOL said National Freight Inc. will pay $1.07 million to 357 dispatchers and yard spotters who wrongly were declared exempt from the Fair Labor Standards Act’s overtime requirements. "The company paid dispatchers flat salaries, regardless of the number of hours they worked, creating overtime violations when they worked more than 40 hours in a week," DOL said in a news release. "[National Freight] paid yard spotters by the hour, but failed to pay overtime when legally required." The company also failed to maintain payroll records.
Other cases involve construction-related companies in California, Utah, Massachusetts, Arizona, and Kansas. The PROSALES story has the details.