Furniture manufacturer pays $93K in back wages and damages for denying overtime to piece-rate workers

Furniture manufacturer pays $93K in back wages and damages for denying overtime to piece-rate workers

May 2, 2024
This is not the first time the company failed to pay workers properly.

An investigation conducted by the U.S. Department of Labor (DOL) has determined that Alumatech Furniture Manufacturing Inc. failed to pay eight workers their overtime rate. The company, which manufactures outdoor furniture, violated the Fair Labor Standards Act and did not pay overtime to piece-rate and commission-based workers when required.

This is not the first time the company failed to pay workers properly. A prior investigation, which looked at pay records from September 2016 through September 2018, found that the employer had failed to pay overtime premiums to piece-rate workers and was forced to pay more than $8,000 in back wages and an assessment of $734 in civil money penalties to resolve its violations. For its current investigation, Alumatech Furniture Manufacturing will have to pay $92,562 in back wages and liquidated damages to the affected workers, as well as $8,328 in penalties for repeat violations.

What people are saying

In a recent quote, Wage and Hour Division District Director Nicolas Ratmiroff said, “The U.S. Department of Labor is committed to ensuring workers get every dollar they earned. Employers who choose to pay employees by piece or hour must still pay non-exempt employees the required overtime rate for hours over 40 in a workweek. Employers should contact the Wage and Hour Division to ensure their pay practices comply with the law. Faulty pay practices can lead to sizeable wage and damage recoveries and possibly penalties, all of which makes for a very costly lesson.”

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About the Author

Alexis Gajewski | Senior Content Strategist

Alexis Gajewski has over 15 years of experience in the maintenance, reliability, operations, and manufacturing space. She joined Plant Services in 2008 and works to bring readers the news, insight, and information they need to make the right decisions for their plants. Alexis also authors “The Lighter Side of Manufacturing,” a blog that highlights the fun and innovative advances in the industrial sector. 

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