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The Department of Labor filed a complaint against Red Oak Tree Service, Inc., an Illinois landscaping and tree removal business for failing to pay required overtime to its workers under the Fair Labor Standard Act (FLSA). The Wage and Hour Division (WHD) investigators are requesting $481,927 in back wages and an equal amount in liquidated damages for the employees who were paid improperly.
Violations of FLSA overtime provisions
The investigators found that Red Oak Tree Service and its owner paid employees in cash for the overtime work at their straight time pay. Under the FLSA, employers are required to pay time and one-half the hourly rate for hours over 40 in a work week. During off-peak season, March, April, October, and November, the business paid employees in cash, without keeping records of any wages paid.
Cash payments made during peak-season were paid off the books, too. However, the payroll records demonstrated compliance with FLSA. The WHD alleges the defendants “repeatedly and willfully” violated certain sections of the FLSA.
Pay employees correctly
“Employers are legally responsible for knowing and complying with federal wage laws,” said Wage and Hour District Director Tom Gauza in Chicago.
Improperly paying employees harms the employee and the community. Although this case is pending before the court, it could be a very costly lesson in non-compliance with federal law. Employees who work more than 40 hours per week deserve to be paid overtime as per federal law. Employers are also required to pay taxes and to keep good records of what their workers are paid. This case demonstrates the importance of keeping payroll records and paying employees properly for all hours worked.
For more information about FLSA or to file a complaint, the WHD offers confidential assistance for both workers and employers, regardless of their immigration status or where they are from. The DOL has a new app called Timesheet, available for both iOS and Android devices, in Spanish and English for workers to ensure hours and pay are accurate.
