Payday loan company pays more than $500,000 in back wages to 900 workers

August 18, 2006 - Kansas City, Kansas

The U.S. Department of Labor announced today that Q.C. Financial Inc., a payday loan establishment that operates under the name of Quick Cash, has paid $519,088 in back wages to 900 employees to correct violations of the overtime provisions of the Fair Labor Standards Act (FLSA). The corporation is headquartered in Overland Park, Kan., and has numerous locations throughout the U.S.

"Workers deserve to receive all the wages they have earned," said Secretary of Labor Elaine L. Chao. "We have recovered more than half-a-million dollars for these workers and steps are being taken to make sure they are properly compensated in the future."

The department's Wage and Hour Division in Kansas City conducted an investigation that covered the period Jan. 1, 2004 to March 31, 2006.

According to Karen Chaikin, Wage and Hour district director in Kansas City, the employer failed to pay overtime to non-exempt salaried managers and did not include bonuses in computing overtime pay for non-exempt salaried managers and employees who were paid hourly.

The Fair Labor Standards Act requires employees to be paid at least the federal minimum wage of $5.15 per hour for all hours worked and time and one-half their regular rate of pay for hours worked more than 40 in a week, unless the employee is determined to be exempt. In most circumstances, non-discretionary bonuses must be included with other pay to determine the rate of pay for purposes of calculating overtime. Employers must also maintain accurate time and payroll records.

For more information on the FLSA, call the Department of Labor's toll-free help line at (866) 4USWAGE (487-9243).

News Source

U.S. Department of Labor, Norma J. Conrad, Staff Writer

Related Stories - Kansas

• Legislator targets payday lenders [December 11, 2006]
• Loan shops cash in on the suburbs [September 5, 2006]
• Payday loan company pays $500,000 in back wages [August 18, 2006]
• Some overuse bank overdraft programs [June 26, 2006]
• Interview with JJ Selmon, Community Organizer - LoanMax Protest [June 24, 2006] -
• Regulate payday loans [June 19, 2006]
• Industry leaders, consumer advocates to meet about payday loans [June 9, 2006]
• Protesters target local loan businesses [June 4, 2006]
• Group to protest payday loans [June 2, 2006]
• Payday loan company QC Holdings reports drop in income [May 4, 2006]

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