Lockheed Martin had to hand over $327,271 in back pay to employees after federal investigators found labor violations at a location in the Panhandle.
The Maryland-based security and aerospace company paid damages to 20 employees at its Crestview worksite after violating the Fair Labor Standards Act, according to a press release from the U.S. Department of Labor.
The company didn’t keep an accurate payroll record, and classified employees as exempt from the labor act’s overtime requirement when they should have received overtime pay.
Lockheed Martin also fell below salaried workers below the hourly rates and fringed benefits required for workers on the company’s contact with the U.S. Department of Defense.
A prepared statement from Wage and Hour Division District Director Daniel White pointed out employers’ misunderstanding surrounding certain labor laws.
“Paying employees a fixed salary does not necessarily mean that they are not entitled to overtime,” White said in a press release. “Employers need to understand their responsibilities and ensure their pay practices comply with the law. The Wage and Hour Division works to ensure employees receive the wages they have rightfully earned, and we encourage all employers to reach out to us and use the variety of tools we offer.”
Lockheed Martin issued the following email response:
“Lockheed Martin has cooperated fully with the Department of Labor, and following a review, took immediate action to reclassify and compensate 20 impacted employees at our Crestview, Fla., facility. We continue to review job classifications to ensure compliance with the Fair Labor Standards Act and other related laws and requirements.”
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This article appears in Best of Orlando® 2019.