Texas-based logistics organisation Accelore Group, operating as Accelore Solutions and contracted with Amazon to provide package delivery services, has paid $152,755 (£117,419) in back wages to 289 employees to resolve violations of the overtime requirements under the US Fair Labor Standards Act (FLSA).
After an investigation by the US Department of Labor’s Wage and Hour Division (WHD), the organisation was found to have failed to pay drivers for overtime when they worked more than 40 hours per week. Accelore Group paid some employees flat rates per day, without taking into account the number of hours worked. Consequently, the organisation violated the FLSA overtime rules by failing to pay time-and-one-half when drivers worked more than 40 hours.
Furthermore, when paying overtime to hourly employees, Accelore Group was found to have failed to include incentive pay when determining overtime rates; this led to overtime being paid at rates below those required by US law.
Jesus Valdez, district director at WHD, said: “Employers have a responsibility to understand the law and to pay their workers required overtime when they work more than 40 hours in a work week.
“The US Department of Labor is committed to enforcing the law so that employees are paid the wages they have legally earned, and so that employers compete on a level playing field. We encourage all employers to contact our office to learn more about federal wage laws.”
Accelore Group was unavailable for comment at the time of publication.