As a small or midsize business owner, it is crucial to understand and comply with employment laws to avoid costly penalties and legal consequences. A recent case involving Petroline Inc., the operator of Putnam Truck Stop in Jersey City, serves as a reminder of the importance of adhering to overtime payment requirements.  



This article aims to inform small and midsize business owners about the penalties for violating employment laws, specifically related to overtime pay. Properly classifying your employees isn’t as straightforward as it seems. The Department of Labor has specific qualifications to classify an employee as exempt from overtime pay. Getting this wrong is costly.  


The HR and Payroll experts at Asure help over 90,000 businesses get it right. Connect with an HR expert today.  

Case Background 

The U.S. Department of Labor’s Wage and Hour Division investigated Petroline Inc., following a complaint regarding the denial of overtime pay to gas station attendants. The investigation determined that the employer failed to provide the legally required overtime premium to employees who worked more than 40 hours in a work week, as mandated by the Fair Labor Standards Act (FLSA). 

Recovery of Back Wages 

As a result of the investigation, the U.S. Department of Labor recovered a total of $100,811 in back wages owed to the affected workers. This amount represents the compensation the employees should have received for their overtime work. 

Impact on Workers 

Fifteen gas station attendants were affected by the employer’s failure to pay overtime wages. The FLSA provides essential protections to ensure that employees are fairly compensated for their work, especially when they exceed the standard 40-hour workweek. 


Importance of Overtime Compliance 

The case highlights the critical importance of understanding and complying with overtime pay regulations. Employers must recognize that paying employees a fixed salary does not automatically exempt them from paying overtime wages.  


Unless a specific exemption applies, all eligible workers, including those on a salary basis, are entitled to receive overtime compensation when they work more than 40 hours in a week. 

Guidance from the Wage and Hour Division 

District Director Paula Ruffin from the Wage and Hour Division emphasizes that employers should be aware of their responsibilities and seek guidance to ensure compliance with employment laws.  

The division offers numerous tools and resources to help employers understand their obligations and prevent violations. Employers are encouraged to reach out to the Wage and Hour Division for assistance. 

Best Practices for Overtime Compliance 

To avoid penalties and legal issues related to overtime pay, small and midsize business owners should consider the following best practices: 

Familiarize yourself with employment laws 

Stay informed about federal, state, and local regulations regarding overtime pay and other wage-related matters. 


Review employee classifications 

Understand the exemptions and classifications outlined by the FLSA to ensure proper designation of employees as exempt or non-exempt from overtime pay. 

Track employee hours accurately 

Implement reliable timekeeping systems to record and track employee work hours, including any overtime hours worked. 


Calculate and pay overtime correctly 

Understand the overtime calculation method and ensure accurate payment of overtime wages for eligible employees. 


Seek professional guidance 

If you have questions or concerns about overtime compliance, consult with an expert at Asure or reach out to the Wage and Hour Division for clarification. 


Maintaining compliance with employment laws, particularly regarding overtime pay, is crucial for small and midsize business owners.  

The recent case involving Petroline Inc. serves as a reminder of the penalties and financial consequences that can arise from violating overtime regulations.  

By familiarizing yourself with the relevant laws, implementing best practices, and seeking guidance when needed, you can protect your business, maintain fair labor practices, and avoid costly legal disputes. 

The HR and Payroll experts at Asure help over 90,000 businesses get it right. Learn more here. 

Unlock your growth potential

Talk with one of experts to explore how Asure can help you reduce administrative burdens and focus on growth.