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Permian Basin Community Centers to Pay Almost $69K for Employee Misclassification Violations

June 13, 2012

In another recent U.S. Department of Labor (DOL) employee misclassification investigation that Vincent Howard and our Costa Mesa labor and employment legal team has been following, twelve Permian Basin Community Centers for Mental Health and Mental Retardation (PBCC) have agreed to pay 78 employees $68,990 in overtime back wages--after the DOL found the company's Texas-based facilities responsible for violating the Fair Labor Standards Act's (FLSA).

According to the DOL's Wage and Hour Division (WHD) press release, the division's investigation discovered that the company misclassified employees, including intake specialists, rehab providers, intervention specialists, and other workers, as professional employees and exempt from the FLSA's overtime requirements. The workers were reportedly located in Odessa, Van Horn, Midland, Alpine, Presidion and Fort Stockton, Texas.

As Vincent Howard has reported in a related Carson wage and hour attorney blog, the FLSA provides overtime and minimum wage exemptions for employees who are employed as professional, executive, administrative, and outside sales employees, as well as some computer employees. These exemptions, often called "white collar" exemptions, must meet specific criteria in order to qualify as exempt from the overtime requirements of the FLSA.

To qualify for a professional exemption, an employee's main work duties must include an advanced knowledge and understanding in an area of science or learning, acquired by specialized instruction that is intellectual in nature and requires discretion and judgment. According to the FLSA, professional employees must be paid on a fee or salary basis, with compensation of at least $455 per week.

The FLSA also requires that nonexempt employees covered by the act are paid the federal minimum wage for every hour worked, currently $7.25, plus overtime compensation totaling one and one-half their normal payment rates, including bonuses, commissions and incentive pay for any hours worked beyond 40 in a workweek.

If you or someone you know have experienced violations of the Fair Labor Standards Act, or employee misclassification, contact Vincent Howard and our Orange County employment attorneys at Howard Law, PC so we can discuss your labor and employment issue over a free consultation. Call us today, toll-free at 1-800-872-5925.

Permian Basin Community Centers agrees to pay nearly $69,000 in overtime back wages following US Labor Department investigation, U.S. Department of Labor Press Release, June 7, 2012

Related Web Resources:

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)

Department of Labor (DOL): Wage and Hour Division (WHD)

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