Security workers often grapple with challenging tasks while earning a median national wage of just $15.13 per hour. However, for 58 workers in the security industry, justice is on the horizon as the U.S. Department of Labor (DOL) steps in to recover their rightful wages from their employer.
Security Company Fails to Comply With Labor Regulations
In May 2023, the DOL achieved a significant milestone by obtaining a consent judgment in the U.S. District Court for the Western District of Louisiana. The judgment mandated that a security company, the employer in question, must pay $23,841 in back wages and an equal amount in liquidated damages to the affected employees.
This legal victory follows a lawsuit initiated by the DOL in 2021 after the security company failed to comply with the findings of the department’s Wage and Hour Division. Upon investigation, it was revealed that the company had denied overtime pay to its workers by neglecting to combine hours worked at multiple locations. Such practices were in direct violation of the Fair Labor Standards Act’s overtime provision.
Wage and Hour Division Regional Administrator Betty Campbell, based in Dallas, expressed her concerns, stating, “[the security company] deprived 58 workers of their overtime pay by ignoring their responsibilities under federal law. The recovery of back wages and damages will help these employees support themselves and their families.”
In addition to the legal action taken in district court, the DOL also pursued a separate case in administrative court. This additional effort led to the issuance of consent findings, which obliged the security company to pay $7,317 in civil money penalties for repeat violations.
The Importance of Compliance
Regional Solicitor of Labor John Rainwater, based in Dallas, emphasized the importance of compliance with labor laws, noting that “compliance with the law is not optional. Employers cannot repeatedly disregard the law, and the U.S. Department of Labor will take legal action when employers like the security company refuse to pay employees their rightful wages. This case’s resolution shows employers that there can be costly consequences for defying the laws.”
The successful resolution of this case highlights the DOL’s commitment to protecting the rights of workers and holding employers accountable for wage violations. In fiscal year 2022, the Wage and Hour Division of the DOL recovered more than $3.9 million for over 4,600 individuals employed in guard services, thanks to over 600 investigations conducted nationwide.
Conclusion
This case serves as a crucial reminder to small and midsize business owners about the significant penalties associated with violating employment laws, particularly those related to overtime pay. Compliance with labor regulations is not only a legal obligation but also a moral responsibility.
Failing to adhere to these laws can result in severe financial consequences and damage to a company’s reputation. It is imperative for all business owners to prioritize fair treatment and compensation of their employees to ensure a healthy and ethical work environment.