Following an investigation by the U.S. Department of Labor's Wage and Hour Division, it has filed a lawsuit against Diamond Tree Experts Inc. for violating the Fair Labor Standards Act after it discriminated against employees.
According to an earlier investigation by the division's Salt Lake City District Office, Diamond Tree Experts paid straight-time for all hours worked and failed to provide overtime compensation at time, which is required by FLSA. While Diamond Tree Experts paid the back wages, it later required employees to return the funds. After one of the employees refused to pay back the money, Diamond Tree Experts terminated that employee.
"Two employees who were paid more than $7,500 in overtime back wages following our initial investigation were instructed to reimburse the company for the wages they rightfully earned," says Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "Requiring the return of an employee's earnings and retaliation of the employee is illegal and unacceptable. This lawsuit should send a clear message to employers who consider such tactics. The department will use whatever enforcement tools are necessary, including litigation, to ensure that workers receive and keep the wages they have earned and to ensure that employers who blatantly ignore the law are brought to justice."
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The DOL filed the lawsuit in the U.S. District Court for the Central District of Utah in Salt Lake City against Diamond Tree Experts Inc. and owner Robert Trent Van Dam. The lawsuit is pursuing injunctive relief, back wages, liquidated damages, reinstatement and other damages that have yet to be determined.
Under FLSA, covered, nonexempt employees must be paid at least the federal minimum wage of $7.25 per hour for all hours worked as well as time and one-half their regular rates of pay. This includes commissions, bonuses and incentive pay for hours worked past 40 in a week. Employers must also keep accurate time and payroll records.
Additionally, FLSA includes a nonretaliation clause to protect workers when they exercise their rights. This provision mandates that any employee who is discharged or discriminated against because has the right to file a retaliation complaint with the Wage and Hour Division or file a private cause of action. Remedies include employment reinstatement, lost wages and an additional equal amount as liquidated damages.
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