The WHD investigation found that Kal Freight paid some dispatchers and office employees flat salaries, regardless of the number of hours that they worked. By doing so, the employer failed to pay overtime when employees worked more than 40 hours in a workweek, an FLSA violation. Kal Freight paid other employees hourly, but paid for overtime hours at straight time rates, in separate checks. The law requires employers to pay overtime at time and one-half workers’ regular rates for hours they work beyond 40 in a workweek unless a specific exemption applies. The employer’s failure to keep accurate records of the number of hours employees worked also resulted in FLSA recordkeeping violations.
“The U.S. Department of Labor is committed to ensuring that workers get paid all the wages they have legally earned, including overtime when they work more than 40 hours in a workweek,” said Wage and Hour Assistant District Director Gayane Aleksanian, in West Covina, California. “The Wage and Hour Division will continue to enforce the law so all employers abide by the same rules. We encourage other employers in this industry to review their own pay practices and to avoid violations like those found in this case.”
The department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, and confidential calls to local WHD offices.
For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/agencies/whd
