Kinder Morgan Pays $830,422 to its Employees for FLSA violation

When enacted, the Fair Labor Standards Act established minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Overtime pay at a rate no less than one and one-half times an employee’s regular rate of pay, is required after 40 hours of work per workweek. Currently, the federal minimum wage is $7.25 per hour, but many states also have minimum wage that are higher.

Kinder Morgan and its subsidiary, Kinder Morgan Energy Partners LP, one of the largest pipeline transportation and energy companies in North America, just agreed to pay $830,422 in back wages to 4,659 current and former employees, resolving a lawsuit filed by the U.S. Department of Labor. The companies are also permanently enjoined from future violations of the FLSA.

The case was brought before the U.S. District Court for the Southern District of Texas and a consent judgement has just been filed, but still requires judicial approval. The lawsuit came following an investigation led by the Houston District Office of the department’s Wage and Hour divisions which found systemic FLSA violations at 11 Kinder Morgan locations in Arkansas, Colorado, Louisiana, North Dakota, and Texas.

U.S. Secretary of Labor Hilda L. Solis, said “the Labor Department will hold employers accountable when they do not properly pay their workers. The FLSA requires that hours be counted and overtime pay calculated accurately and in a transparent process. Today’s settlement agreement provides back wages, but it will also help ensure that Kinder Morgan complies with the law in the future.”