Opinion ID: 762751
Heading Depth: 3
Heading Rank: 3

Heading: The FLSA Violations

Text: 14 RSR employees were paid hourly wages starting at the minimum wage. RSR deducted from a guard's first or second paycheck a $40 or $45 fingerprint processing fee. The fingerprinting was required under state law, and the deductions were recorded on the payroll records as state fees. Payroll records reflect that during the weeks these deductions were made, the guards received less than the minimum wage--a clear violation of the FLSA. See 29 U.S.C. §§ 206, 215(a)(2) (1994). 15 In addition, RSR security guards frequently worked over 40 hours, with some employees logging an average of 70 to 80 hours per week. The actual hours worked were recorded on timesheets and logbooks. However, Stern or Watkins recorded different numbers on payroll records, in order to reflect one-third less overtime worked per week than each guard actually had worked. Thus, although RSR's payroll records indicated that RSR was compensating guards for overtime at one and one-half times their regular pay, RSR was in fact paying its employees the same rate for all hours worked, including overtime, and deliberately concealing this practice by falsifying its payroll records. These practices also violated the FLSA. See 29 U.S.C. §§ 207, 211(c), 215(a)(2), 215(a)(5) (1994).