U.S. Department of Labor Investigation Results in Southern California Garage Door Company Paying $55,764 Owed to 43 Employees

SAN DIEGO, CA – Ziegler Inc. – a Santa Ana, California, garage door supplier – will pay $55,764 owed to 43 employees after a U.S. Department of Labor’s Wage and Hour Division (WHD) investigation found the employer violated minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Ziegler Inc. paid some workers a piece rate without regard to the number of hours they worked. This practice resulted in minimum wage violations when the piece rate paid failed to cover all the employees’ hours at the federal minimum wage of $7.25 per hour. Overtime violations resulted when these employees worked more than 40 hours in a work week but were not paid overtime.

Additional overtime violations were found when the employer incorrectly classified some employees as independent contractors and paid them without regard to the number of hours they had worked. Other workers were paid flat salaries without regard to their hours, resulting in more overtime violations when these employees worked more than 40 hours in a week. Additional overtime violations resulted when Ziegler Inc. simply paid some workers straight time rates for overtime hours on the face of the records.

“We encourage employers to contact the Wage and Hour Division for assistance, and to make use of the many tools we provide to help them understand the law and avoid violations,” said Wage and Hour Division District Director Rodolfo Cortez, in San Diego. “This investigation demonstrates the Department of Labor’s commitment to ensuring that workers receive the wages they have legally earned, and that employers compete on a fair and level playing field.”

Ziegler Inc. manufactures custom-made garage doors and gates from its facility in Santa Ana.

Source: US DOL  |  2018 © Copyright Payroll Masters

Payroll Masters is not a licensed insurance broker or agent, law firm or accountancy and does not provide professional or legal advice and therefore Payroll Masters assumes no responsibility for claims arising from the use or implementation of any information proffered here or verbally. This document has been provided for informational purposes only and is not intended and should not be construed to constitute legal or financial advice. Please contact your attorney, CPA, insurance agent or financial advisor in connection with any fact-specific situation in which you intend to take significant employment action. Reader shall and does hereby indemnify, defend, and hold harmless Payroll Masters from and against any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including without limitation interest, penalties, and reasonable attorney fees and costs, that either party may incur or suffer and that arise from, result from, or are related to this article, topics contained herein or any actions reader may have taken as a result of reading said article.