Labor Law News

Violations Of the New Overtime Law

U.S. Labor Department Recovers Over $2.2 Million in Back Wages for 600 Employees of Action Force Security Inc. in Puerto Rico

NEW YORK, NY -- In a victory for low-wage workers throughout Puerto Rico, the Chief Judge of the U.S. District Court for the District of Puerto Rico has granted the U.S. Department of Labor’s petition for summary judgment and awarded over $2.2 million in back wages and damages to more than 600 employees of Action Force Security Inc., a security guard firm based in Rio Piedras.

Chief U.S. District Judge Jose Antonio Fuste ordered the firm and the company’s president and owner, Yolanda Lopez Torres, to pay $1,124,736.60 in overtime back wages plus an equal amount in liquidated damages, and to pay the Labor Department $85,660 in civil money penalties. In all, the company has 30 days to pay a total of $2,335,133.20 in order to avoid contempt of court sanctions.

“This action reflects our commitment to ensuring that workers are paid all the wages they have earned,” said Secretary of Labor Elaine L. Chao. “These security guards were not receiving the overtime pay to which they were entitled, and I am pleased that the department was able to recover over $2 million for them.”

Last year, the department filed suit against the defendants alleging violations of the overtime and recordkeeping provisions of the federal Fair Labor Standards Act (FLSA). The violations took place between Jan. 30, 2001 and Feb. 28, 2005. An investigation by the Labor Department’s Wage and Hour Division found that Action Force Security routinely required its security guards to work overtime without paying them time and one-half for the hours worked over 40 in a week. Rather, the workers were paid straight time for all hours worked. The investigation also revealed improper recordkeeping.

The FLSA requires that employees be paid at least the applicable minimum wage and time and one-half their regular rate of pay for hours worked over 40 per week. Employers are also required to maintain accurate records of employees’ wages, hours and other conditions of employment.

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