Southeast Texas Record

Sunday, March 29, 2020

DEPARTMENT OF LABOR: Department of Labor Recovers $130,000 for Employees of San Marcos, Texas Security Company to Resolve Minimum Wage, Overtime

By Press release submission | Jan 7, 2020


U.S. Department of Labor issued the following announcement on Dec. 31.

After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), U.S. Security Service PLLC in San Marcos, Texas has paid $133,070 to resolve minimum wage and overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer, which provides security services to clients in New Braunfels, San Marcos, Kyle and Austin, Texas, made deductions from employees’ wages to pay for uniforms. This practice resulted in violations when these deductions brought their hourly wages below the federally required $7.25 per hour. U.S. Security Service also incorrectly classified security guards as independent contractors and subsequently failed to pay them overtime when they worked more than 40 hours per week. WHD also cited the employer for recordkeeping violations.

“During the busy holiday season, security guards often work extra hours, and employers must pay them all of the wages they’ve legally earned,” said Wage and Hour Division District Director Nicole Sellers in Austin, Texas. “This case should remind all employees to review their pay and recordkeeping practices to ensure they pay their employees properly and avoid violations of the law. We encourage employers to contact the Wage and Hour Division for assistance in understanding their responsibilities.”

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U.S. Department of Labor