In Acosta v. Fire & Safety Investigation Consulting Servs, LLC, the U.S. Department of Labor investigated Fire & Safety Investigation Consulting Services (Fire & Safety), a private investigation firm in West Virginia, after an anonymous consultant filed a complaint alleging the company had failed to pay overtime for hours worked beyond 40 per week.
The investigation revealed that Fire & Safety not only neglected to pay proper overtime wages but also failed to maintain accurate records of employees’ work hours for each day.
The district court found that Fire & Safety had violated the Fair Labor Standards Act (FLSA) and ordered the company to pay a total of $1.6 million, which included $817,902 in back wages and an equal amount in liquidated damages.
Key Lessons Learned From this Case:
- Properly tracking and maintaining accurate records of employees’ work hours is not optional. This case illustrates that failing to keep detailed and accurate records can lead to severe penalties.
- This case underscores the impact that whistleblowers or anonymous reports can have on holding companies accountable. Even if a complaint is filed anonymously, it can still trigger a significant investigation by the Department of Labor.
- Employers should understand the full scope of the FLSA, including which employees are exempt versus non-exempt and what types of work qualify for overtime pay.
Learn more about California Labor Laws through our detailed guide.
