Does the Fair Labor Standards Act (FLSA) apply to my business?
There’s a unique quality to Tampa Bay-based Advanced Marketing and Processing, better known as PMC Home & Auto Insurance, being busted for owing $89,866 in back pay to 138 employees.
Most companies caught by the Department of Labor’s Wage and Hour Division getting funny with workers’ money come from the blue-collar world. PMC comes from insurance, the quintessential white-collar industry.
PMC mistakenly applied a loophole in federal overtime laws, resulting in many employees working overtime but getting no more than their flat rate salary. One way PMC ran with the pack of the other pay violators — they also “failed to maintain required records of the number of hours employees worked.”
Wage and Hour Division District Director James Schmidt said in a statement, ““Employers must understand their obligations and responsibilities under the law. Simply because a pay practice may appear to be common does not, in any way, mean that it complies with the law.”