Wednesday, April 22, 2009

IFCO Systems Paid Back Wages and Penalties

IFCO Systems North America Inc., doing business as IFCO Systems, has paid $1,602,267 in back wages to its employees. DOL said the Wage and Hour investigation found 1,751 employees in 17 states had not been properly paid by the company for overtime hours that they worked as the Fair Labor Standards Act requires. The Wage and Hour Division also fined the company $963,050 in civil money penalties.

Investigators found that IFCO Systems, a Houston-based company that manufactures and repairs reusable plastic containers and wooden pallets, did not pay its employees time and one-half for hours worked over 40 in a workweek. The company also did not maintain the records that they are required to keep under the law.

The investigations took place in the states of Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Ohio, Oklahoma, Oregon, Tennessee, Texas and Utah on the case, according to DOL.

Back wages and civil money penalties have been paid in full, and the company has agreed to injunctive relief enjoining them from further violations of the FLSA.

A separate 2002 Wage and Hour Division investigation in Atlanta, Ga., found the company had violated FLSA, resulting in $30,538 in overtime back wages paid to 67 employees.

"The Department of Labor is a voice for working families, and I am committed to ensuring that employers comply with federal labor laws so workers can have confidence they will receive the compensation they've earned and deserve," said Labor Secretary Hilda L. Solis.

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