Mid Valley Industrial violated multiple regulations including time keeping, overtime and minimum wage.
Failing to pay workers for time worked will almost always result in an investigation by the U.S. Department of Labor. After the findings in this case Mid Valley Industrial Services Inc. will pay back wages to 56 workers in excess of $100,000 for not properly keeping time clock records of the time employees drove to job sites, and loading or unloaded work vehicles. Additionally, a salaried employee was inaccurately classified as exempt from overtime.
The prevalent trouble, as well as the simplest to circumvent is failure to maintain accurate records of employee hours worked.
“Workers must be paid for all hours they work, including time spent traveling between job sites,” said David King, district director for the Wage and Hour Division in Minneapolis. “Denying these workers their hard-earned wages provided an economic advantage to this employer on the backs of these workers. Other employers who may be committing this same violation should take note, and rectify their practices.
Not using a time keeping system, time clock, or other record keeping policy exposes the employer to a assortment of problems, in fact the Seventh Circuit U.S. Court of Appeals held that an employee who sues to recover unpaid overtime will not need to present evidence of the hours claimed to have worked if the employer failed to keep time clock records. In other words, if a company is not maintaining accurate time clock records the possibility of being found liable on claims becomes a probability, even if there is no supporting evidence to the contrary.
Laws on records of employee hours worked differ from state to state. In Californian for example, both current and former employees may inspect their payroll records and request copy within 21 days of the request to do so or be subject to a fine, employee may also sue to obtain the information and recover costs and fees, including attorney’s fees. Cal. Code § 226.