U.S. Labor Department’s Wage and Hour Division (WHD) investigator Siriporn Poondee is stressing to local employers the importance of keeping “accurate records” of working hours for employees, because such data is needed when the employer faces a review by the federal agency.

Poondee is the new WHD investigator and the second one on assignment from California since the local WHD office was opened earlier this year. She is on island for another month as the WHDS office continues to receive more and more confidential inquiries from local workers on wage issues.

MINIMUM WAGE & DEDUCTIONS

Among the issues that have reached the local WHD office, one deals with deductions taken out by the employer from an employee who earns minimum wage, due to such things as a cash register shortage or breaking things in the office.

Poondee says it’s an “illegal deduction” if an employer takes money out of a minimum wage earner to cover for such things.

“If you’re a minimum wage earner there shouldn’t be a deduction taken out of your pay for such things,” she said. “The employer cannot make [such] a deduction, because that will cause your rate to be below minimum.”

Regarding deductions for employee uniforms, Poondee first pointed out that, “we see a lot of public and private sector requiring employees to wear uniforms. But the costs cannot be deducted from the employee's wages, because that brings the employee’s wage below the minimum.”

“The only deduction that the [federal] law allows employers to make is for taxes, retirement benefits, or anything that you see on a payroll form,” she added.

WORK HOURS

On the issue of hours an employee works, Poondee pointed out that federal law requires the “employer must pay employees all the hours worked and the employer must make sure that all the hours are paid.”

“It goes hand-in-hand with keeping accurate records,” she said, adding that when an enforcement comes in for review of records, the employer has to prove that these are the hours the employee worked, including those who work on salary basis.

“We will determine each hour whether or not they meet the minimum. It’s acceptable to pay employees... by salary, but as an employer you have to make sure that all the hours are accounted for,” she said.

Regarding required pay for trainees, part time or temporary workers, she said these individuals are entitled to at least minimum wage pay regardless of their employment status. “And regardless of your immigration status, you are entitled to [at least] the minimum wage [pay],” she said.

More than a week ago, USDOL said local retailer Manu’a Inc., failed to pay at least the Fair Labor Standards Act’s (FLSA) minimum wage and overtime premium to 252 workers employed at their their stores during the period of September 21, 2013 through January 25, 2014.

USDOL said the minimum wage violations occurred when new employees worked five to eight or more hours in a day and were paid a flat day rate of $20 dollars. (The retailer was ordered to pay back close to $120,000 to affected workers.)

“Other employees were reduced below the American Samoa retail minimum wage rate of $4.60 per hour when paycheck deductions were made for violations of company policies such as talking back to managers, clocking in late and failing to finish an assignment,” the federal agency said in a news release.

Overtime violations occurred when the employer failed to pay employees for all hours worked, including time worked past the end of their scheduled shift or during their lunch period, it said.

Poondee said yesterday that federal law requires employers to pay employees time and a half, for an employee who works over 40 hours in a work week. Additionally if the employee works through lunch, that is considered work hours.

“I’ve seen many times on this island, during the investigation here, employees taking their lunch break, but when a customer comes in, they have to get up and assist customers,” she said. “Those hours will have to be paid, because they (employees) are not getting a bona-fide lunch break.”

She also says that if the employer requires an employee to show up early before a shift starts, that is considered hours’ worked that need to be compensated. For example, if the employee is required to show up early to do “preparation work” before the start of the shift — those are considered hours worked.

Poondee also shared two issues of interest that have surfaced in the territory several times and one of them is employees working overtime without getting prior approval from the boss, per an employer’s policy. She said the employer is still required by law to pay the overtime although it was not pre-approved. “The employer still has to pay the overtime. That’s the law,” she added.

The second issue is employees complaining about not getting their pay check on the day or date it’s due. “We hear a lot about [payrolls] not made timely. It can be reported to our department, and we can conduct an investigation,” she added.

For employees or employers needing more information, please call Poondee at 254-4585.