Missed payroll results in company owing $200K
When employees didn’t get their paychecks when they were supposed to, it set off a chain of events that led to a health service company owing a sizeable amount in back wages.
According to a Department of Labor investigation, when Cogburn Health Services missed its payroll and failed to pay workers on their scheduled payday, it resulted in the company failing to pay the required minimum and overtime wages. And that’s something the agency has been coming down hard on companies for.
The Result: The company was required to pay $202,634 in back wages. In addition, Cogburn agreed to establish a payroll reserve to make sure its employees are always paid on a timely basis in the future.
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