Finding Text
Type of Finding: Significant Internal Control over Federal Laws and Regulations Compliance Requirement: Fair Labor Standards Act per 29 U.S. Code §207(a)(2) Criteria: The Center must pay non-exempt employees that work more than 40 hours in one work week a rate no less than one and half times their current rate, unless otherwise exempt. Condition: It was noted that a non-exempt employee was underpaid for hours worked during the fiscal year. This employee was paid their regular rate for all hours worked over 40 hours in one work week, this led to an underpayment of wages in the amount of $2,587. Cause: No procedures are in place to identify that non-exempt employees are being paid rates for hours worked more than 40 hours in a work week at a rate no less than one and a half times their current rate. Effect: Paying incorrect rates for hours worked over 40 hours in a work week resulted in noncompliance with the Fair Labor Standards Act. Recommendation: We recommend the Center to reimburse the employee for amounts due for all hours worked more than 40 hours in a work week during the fiscal year at a rate of no less than one and a half times their current rate. We recommend the Center establish and implement procedures to review and achieve compliance with the Fair Labor Standards Act and ensure ongoing adherence to its requirements. Views of Responsible Officials: Management agrees and will reimburse the employee for the amounts due for hours worked more than 40 hours in a work week during the fiscal year. Management will develop review procedures to respond to this finding.