CRESTVIEW, Fla. (WJHG/WECP) - A Crestview business will have to pay employees after an investigation by the U.S. Department of Labor's Wage and Hour Division.
WHD says Lockheed Martin Corp. had paid $327,271 in back wages and liquidated damages to 20 employees for violating provisions of the Fair Labor Standards Act and the McNamara-O'Hara Service Contract Act at a Crestview work site.
Investigators say the company erroneously classified some employees as exempt from FLSA overtime requirements and paid them flat weekly salaries without regard to the number of hours they actually worked. They say it resulted in overtime violations when those employees worked more than 40 hours in a workweek but the employer did not by them overtime in addition to those salaries.
They say Lockheed Martin Corp. also violated the requirements of the SCA when amounts paid to those workers fell below the hourly rates and fringe benefits required by law for workers on the employer's contract with the U.S. Department of Defense.
“Paying employees a fixed salary does not necessarily mean that they are not entitled to overtime,” Wage and Hour Division District Director Daniel White said. “Employers need to understand their responsibilities and ensure their pay practices comply with the law. The Wage and Hour Division works to ensure employees receive the wages they have rightfully earned, and we encourage all employers to reach out to us and use the variety of tools we offer.”
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