LAKE CITY, AR (KAIT) - The U. S. Department of Labor is suing a Lake City business for not paying employees overtime.
According to a news brief, the Department of Labor's Wage and Hour Division found Burley Glenn Bailey violated the Fair Labor Standard Act.
Bailey owns Bailey Picker Repair of Lake City.
The suit alleges Bailey did not pay ten current and former employees $32,133 in overtime pay.
The Department of Labor claims an investigation found that Bailey paid the employees straight time for hours worked, including overtime.
Bailey said his business was exempt from paying overtime because employees worked to maintain and repair agricultural equipment and power tools.
The Wage and Hour Division said the business was not exempt because mechanics rarely worked on a farm site for a farmer. They mainly worked at the owner's shop.
"Employees like Bailey Picker Repair are required to know and apply the law correctly, especially when they are claiming an exemption," said Betty Campbell, regional administrator for the Wage and Hour Division. "Applying an exemption incorrectly costs workers the wages they've rightfully earned, and can result in accumulating a significant back wage liability, additional liquidated damages, and court costs."
The Department of Labor is seeking $32,133 in back wages. They are also seeking another $32,133 in liquidated damages for a total of $64,266 in fines. The department also wants an injunction against future Fair Labor Standards Act violations.
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