Sandia Corp., doing business as Sandia National Laboratory in Albuquerque, has agreed to pay $2,077,248 in overtime back wages to 2,657 research employees after a U.S. Department of Labor Wage and Hour Division investigation found violations of the Fair Labor Standards Act (FLSA).
"Among the department's highest priorities is ensuring that workers are paid all the wages they are owed," said Secretary of Labor Elaine L. Chao. "In this case, we have succeeded in securing more than $2 million in back wages for these workers."
An investigation by the Wage and Hour Division district office in Albuquerque covering the period
from May 23, 2006, to Oct. 31, 2008, found that Sandia Corp. failed to establish a fixed workweek, resulting in employees not receiving complete wages for overtime hours worked.
The FLSA requires that covered employees be paid at least the federal minimum wage of $6.55 for all hours worked, plus time and one-half their regular rates of pay for hours worked beyond 40 per week. The minimum wage will increase to $7.25 per hour effective July 24, 2009. Under the law, employers must also maintain accurate time and payroll records. An employee's workweek is a fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods. It need not coincide with the calendar week but may begin on any day and at any hour of the day. Different workweeks may be established for different employees or groups of employees.
Sandia Corp. cooperated with the investigation and has agreed to future compliance with the law.