Patrick Candoleta, assistant district director for the U. S. Department of Labor’s Wage and Hour Division on Guam, who was yesterday’s speaker for the Society for Human Resource Management meeting at the Pacific Islands Club, said employers could be fined up to $1,100 per violation per employee, and other damages if the complaint is brought to court.
Candoleta said overtime work, under the Fair Labor Standards Act, also known as the Wages and Hours Bill, is defined as any excess hours above 40 hours in a 7-day work week, and overtime pay is computed on a weekly basis.
For example, if an employee worked 42 hours in one week and 38 hours the next week, the employer must still pay for the excess two hours the previous week which is equivalent to one hour and a half of the employee’s regular hourly rate.
Candoleta said management should control the working hours of the employees in the company, but if an employee worked overtime without authorization, the employer should pay for the extra hours as overtime.
“The clock starts ticking for the employee as soon as he starts working, and ends when he stops working, regardless if he or she has already clocked out,” Candoleta said.
Offsetting of hours worked is allowed, Candoleta said, but offsetting should be done within the same week.
Offsetting happens when for instance an employee worked for an extra 30 minutes or one hour after his or her regular work hours.
Candoleta said the same employee may come in 30 minutes or an hour late the following day or within the same week.
Issues regarding deductions are among common complaints being brought to the U.S. Department of Labor, Candoleta said.
He said under the law, no deductions are allowed that would bring down the employee’s wages below the existing minimum wage rate.
Deducting the housing and food allowances of some employees, Candoleta said, is allowed as long as it falls within reasonable rates.
Employers who violate the FLSA face the risks of paying heavy penalties and charges.
But Candoleta said the provisions of FLSA on overtime pay, offsetting, wage deductions and other issues and concerns do not supersede the applicable labor laws of the local government.
He urged employers to keep records of all wages and other important files for up to two years in case any dispute arises between them and their employees.
He also encouraged employees to call the U.S. Labor office on island at 233-0730/0740 or the Guam office at 671-473-9177. You may also visit www.dol.gov/whd for more information.
