Three military contractors have paid more than $1 million to employees who were not paid correctly for on-call time. On-call time is compensable under the FLSA when the on-call conditions are so restrictive or the calls to duty so frequent that the employee cannot effectively use on-call time for personal purposes.
The U.S. Department of Labor completed an investigation against CALNET Inc. and two additional subcontractors that provide language, intelligence and information technology services to the U.S. Army at Fr. Irwin, Calif. The investigation found that CALNET Inc., Acclaim Technical Services Inc., and McNeil Technologies owed overtime pay of $1,060,554 to 865 employees.
The employers violated FLSA recordkeeping requirements for failing to maintain proper records of the number of hours worked and compensation paid to employees.