U.S. Labor Department recovers more than $1.6 million in overtime back wages for...

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Tue Apr 7, 2009 2:53pm EDT

U.S. Labor Department recovers more than $1.6 million in overtime back wages
for 1,751 employees in 17 states from Houston-based IFCO Systems

Civil money penalties total $963,000

HOUSTON, April 7 /PRNewswire-USNewswire/ -- IFCO Systems North America Inc.,
doing business as IFCO Systems, based in Houston has paid $1,602,267 in back
wages to its employees after investigations by the U.S. Department of Labor's
Wage and Hour Division found that 1,751 employees in 17 states had not been
properly paid for the overtime hours that they worked as required by the Fair
Labor Standards Act (FLSA). The Wage and Hour Division also fined the company
$963,050 in civil money penalties.

"The Department of Labor is a voice for working families, and I am committed
to ensuring that employers comply with federal labor laws so workers can have
confidence they will receive the compensation they've earned and deserve,"
said Labor Secretary Hilda L. Solis. 

Wage and Hour Division investigators found that IFCO Systems, which
manufactures and repairs reusable plastic containers and wooden pallets, did
not pay its employees time and one-half for hours worked over 40 in a
workweek. The company also did not maintain the records that they are required
to keep under the law. 

The investigations took place in the states of Colorado, Florida, Indiana,
Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi,
Missouri, Ohio, Oklahoma, Oregon, Tennessee, Texas and Utah. 

Back wages and civil money penalties have been paid in full, and the company
has agreed to injunctive relief enjoining them from further violations of the
FLSA. 

A separate 2002 Wage and Hour Division investigation of the same company by
the division's Atlanta, Ga., district office found violations of the FLSA
resulting in $30,538 in overtime back wages paid to 67 employees. 

The FLSA requires that covered employees be paid at least the federal minimum
wage of $6.55 for all hours worked, plus time and one-half their regular rates
of pay, including commissions, bonuses and incentive pay, for hours worked
beyond 40 per week. The minimum wage will increase to $7.25 per hour effective
July 24, 2009. Under the law, employers must also maintain accurate time and
payroll records.  

For more information about the FLSA and other federal wage laws, call the
Department of Labor's toll-free helpline at 866-4US-WAGE (487-9243) or the
Wage and Hour Division's District Office in Houston at 713-339-5500.
Information is also available on the Internet at www.wagehour.dol.gov.  

U.S. Department of Labor releases are accessible on the Internet at
www.dol.gov.  The information in this news release will be made available in
alternate format (large print, Braille, audio tape or disc) from the COAST
office upon request.  Please specify which news release when placing your
request at 202-693-7828 or TTY 202-693-7755.  The Labor Department is
committed to providing America's employers and employees with easy access to
understandable information on how to comply with its laws and regulations. 
For more information, please visit www.dol.gov/compliance.


SOURCE  U.S. Department of Labor

Elizabeth Todd of the U.S. Department of Labor, +1-972-850-4710
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