A U.S. District Court Judge rejected an appeal and upheld a 2018 ruling ordering Timberline South of Gaylord, Mich. to pay $878,874 in back wages and liquidated damages to 50 employees for violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). An investigation had determined the company failed to pay employees—including truck drivers, equipment operators and shop personnel—overtime when they worked beyond 40 hours in a work week. Instead, the company paid only “straight time” no matter how many hours employees worked, and paid various combinations of hourly rates, piece rates and day rates. The ruling also noted the company failed to provide—despite numerous opportunities—adequate records of the time employees spent in travel and taking bona fide meal breaks.
Officials with the federal Dept. of Labor Wage and Hour Div. said the case demonstrates that employers bear the responsibility to maintain accurate records of their employees’ daily and weekly hours to show that employees receive the pay they are owed by law. The FLSA requires covered employers to pay non-exempt employee’s time-and-one-half their regular rates of pay after 40 hours worked per week regardless of whether the employees are paid on a salary, piece rate, hourly rate, or a combination. Timberline South has again appealed the ruling.