U.S. Labor Department
Takes Legal Action Against Houston-Based CEMEX To Secure More Than $5 Million In Overtime
Lawsuit seeks backwages for
2,000 ready mix drivers in 8 states
Houston, TX (CompNewsNetwork) - The U.S. Department of Labor has filed a lawsuit against
Houston-based CEMEX Inc. for failing to properly pay overtime back wages amounting to more
than $5 million to about 2,000 ready mix drivers from eight states in violation of the Fair
Labor Standards Act (FLSA). The department filed the suit against CEMEX following an
investigation by its Wage and Hour Division in Houston covering the three-year period from
September 2005 to September 2008.
"It is a top priority of this department to ensure that workers receive all the wages
they have earned and we have recovered record amounts of back wages for workers since
2001," said Secretary of Labor Elaine L. Chao. "With this legal action, we are seeking to
recover more than $5 million that 2,000 workers are owed for their overtime work."
The investigation found the company failed to pay overtime wages on piece rate and
incentive bonus pay for hours worked in excess of 40 in a workweek, for which nonexempt
employees are entitled to premium pay. In the case of employees paid on a piece rate,
and/or entitled to receive an incentive bonus, all remuneration must be included into the
regular rate of computing the overtime premium. In both instances, an employee is entitled
to a sum equivalent to one-half the regular rate of pay multiplied by the number of hours
worked in excess of 40 for the week.
Affected employees of CEMEX, a provider of cement and concrete products, worked in
Texas, New Mexico, Arizona, California, Florida, Georgia, North Carolina and South
The FLSA requires that covered employees be paid at least the federal minimum wage of
$6.55 for all hours worked, plus time and one-half their regular rates of pay for hours
worked over 40 in a workweek. The regular rate should include most commissions, bonuses and
incentive pay. Employers must also maintain accurate time and payroll records. Effective
July 24, 2009, the minimum wage will increase to $7.25 per hour.
The Labor Department's Wage and Hour Division concluded 30,467 compliance actions and
recovered a record $220 million in back wages for more than 341,000 employees in fiscal
year 2007. Back-wage collections in fiscal year 2007 represent a 67 percent increase over
back wages collected in fiscal year 2001. The number of workers receiving back wages has
increased by 58 percent since fiscal year 2001.
For information about the FLSA, call the Department of Labor's toll-free helpline at
866-4US-WAGE (487-9243) or contact the Wage and Hour Division's district office in Houston
at 713-339-5500. Information is also available on the Internet at www.wagehour.dol.gov.
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