U.S. Department of Labor Investigation Results in SF Company Paying Employees $791,935 in Back Wages

SAN FRANCISCO, CA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Revel Systems Inc. – a software company based in San Francisco, California – has paid $791,935 in back wages to 333 employees for violating the Fair Labor Standards Act (FLSA).

WHD investigators found that Revel Systems Inc. paid overtime-eligible employees flat salaries without regard to the number of hours they had actually worked. The company had erroneously applied an exemption from the overtime requirements to employees working in positions such as Client Success Managers, and Client Relations and Sales Support, whose positions failed to meet the criteria required for exemption. This practice resulted in overtime violations when employees worked more than 40 hours in a work week but were not paid overtime. Investigators also discovered that the employer failed to incorporate performance bonuses into employees’ overtime calculations.

“Employers must pay their employees all the wages they have legally earned,” said Wage and Hour District Director Susana Blanco, in San Jose. “We encourage all employers to reach out to us for assistance so that violations like these can be avoided.”

Source: Department of Labor  |   2019 © Copyright Payroll Masters

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