MYRTLE BEACH, SC (WMBF) – A Myrtle Beach roofing company is set to pay $156,346 in back wages to dozens of employees for violating overtime and record-keeping provisions of the Fair Labor Standards Act, according to a news release from the U.S. Department of Labor.
Investigators say they determined Monarch Co., operating as Monarch Roofing, incorrectly classified 81 salaried employees as exempt from overtime, paying them flat salaries without regard to the number of hours they worked. According to the release, the practice resulted in overtime violations when the employees worked more than 40 hours in a work week but were not paid overtime.
The U.S. Department of Labor said the business failed to pay three hourly employees additional half-time when they worked more than 40 hours in a work week.
According to the release, Monarch Co. also did not include employees’ non-discretionary bonuses when they did calculate and pay overtime. Investigators say excluding these amounts resulted in the employer paying overtime at rates lower than those required by law.
The company also failed to keep time records for salaried workers, resulting in record keeping violations under the Fair Labor Standards Act, the release states.
Monarch Co. released a statement on the Department of Labor’s findings:
The Department of Labor report is accurate when reporting that we unknowingly violated the Fair Labor Standards Act. However, no penalties or fines were filed, just the promise to pay back wages. This by no means is a lawsuit. In the investigation we presented our payroll structure that we believed to include overtime, but the Department of Labor disagreed. The DOL reclassified our employees resulting in the back wages. We have since adapted the recommendations of the DOL to be compliant. At Monarch Roofing we are committed to having a great employment culture and playing a large role as a steward to our community.