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Accounting Firm Hit with Labor Law Violations

The West Virginia firm has been sued by the Department of Labor for multiple alleged FLSA violations.
  • May 11, 2012
  • Staff
  • Fair Labor Standards Act

A Bluefield, West Virginia accounting firm has been hit with a lawsuit by the U.S. Department of Labor (DOL) for alleged labor law violations that affected five employees. The suit claims that the firm of Raymond A. Froy Jr. CPA had not provided some employees the minimum requirements under the federal Fair Labor Standards Act (FLSA). The DOL is seeking back wages, seeks to place the firm and Raymond A. Froy Jr. under a permanent injunction from violating the FLSA in the future, and could also choose to level fines for the various labor law violations.

An investigation by the DOL found that the accounting firm failed to pay one employee at least the federal minimum wage, failed to record dates of birth for minor employees, failed to make, keep and preserve adequate and accurate records of workers’ wages, hours and other conditions of employment, and paid non-exempt tax preparers a flat salary or “straight time” for all hours worked, including hours in excess of 40 per work week.

These labor and wage actions by Raymond A. Froy Jr. CPA were deemed to have violated the Fair Labor Standards Act (FLSA), legislation which sets countrywide standards for recordkeeping, minimum wage, and overtime pay. The FLSA requires employers to pay non-exempt employees at least the federal minimum wage (currently $7.25/hr) and overtime pay of one-and-one-half times the regular rate of pay for every hour worked over 40 in a single workweek. For nonagricultural operations, it restricts the hours that children under the age of 16 can work and forbids the employment of children under the age of 18 in certain jobs deemed too dangerous. For agricultural operations, it prohibits the employment of children under the age of 16 during school hours and in some hobs deemed too dangerous. Employers must also display an informational poster outlining the requirements of the FLSA, as well as keep detailed employee time and pay records.

Misclassification, unpaid overtime, and underpayment are serious problems in many industries, but especially in low-paying jobs. If you are being misclassified by an employer or are being wrongly withheld overtime pay, you may be entitled to enter a lawsuit to recover back pay for your deserved compensation. Contact a devoted overtime attorney to see if you might be eligible to pursue compensation in the form of back pay for unpaid overtime or underpayment.