American Airlines FCU Cited By U.S. In Fair Labor Case

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FORT WORTH, Texas – Tellers, member service reps and other employees at American Airlines FCU will receive more than $83,600 in back overtime wages following an investigation by the U.S. Department of Labor’s Wage and Hour Division that found violations of the Fair Labor Standards Act’s overtime and record-keeping provisions.

“This company profited from employees working overtime without paying proper wages,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “According to labor standards, work hours should be counted, recorded and paid for fairly. A nonexempt employee who works more than 40 hours a week is due overtime wages for those hours at a rate of time and one-half his or her regular pay.”

The investigation, conducted by the Wage and Hour Division’s Dallas District Office, found that the credit union improperly classified its salaried employees as exempt from the Fair Labor’s overtime provisions and paid them “straight-time” wages, rather than time and one-half as required by the law. Additionally, the credit union failed to maintain accurate time and payroll records of employees’ work hours and wages.

The $5 billion credit union has agreed to properly classify and compensate employees for all hours worked in compliance with the law. The payments will go to 295 credit union employees.

The Fair Labor Standard Act requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must maintain accurate time and payroll records.

 

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