Lima workers get back pay

LIMA, Ohio - Husky Energy Corp., which operates a refinery in Lima, has paid more than $969,000 in back wages to more than 170 workers because of failure to pay overtime, the U.S. Labor Department said Thursday.

The department's wage and hour division determined that the company had changed the work week from eight-hour days to

12-hour days, but overtime was not paid for the work beyond 40 hours in a week that employees worked 60 hours.

According to the federal agency, the company changed from

8-hour shifts to 12-hour shifts for some of its workers. The change resulted in alternating work weeks of 60 hours and 24 hours. Instead of paying time and one-half, the employee's regular rate for the resulting overtime, the company established what it called an "adjusted" rate, whereby all these hours were compensated at the same rate.

The investigation covered March, 2007, to March, 2009, and involved 173 workers, the Labor Department said. The company agreed to pay $969,182 in back wages to those affected and to change its compensation practice, the agency said.

A second violation involved Husky not including a shift differential in overtime pay. An employer is not required by law to provide a shift differential, but if one is paid, then it must be included as part of the employee's regular rate of pay for purposes of computing overtime, the department said.

Graham White, a spokesman for the Calgary, Alberta, energy firm, released a written statement in response to the Labor Department settlement: "The company in good faith sought a mutually beneficial position that will ensure the success of workers at the facility. The company remains committed to making decisions that balance the long-term interest of the refinery and its employees with prudent and responsible business practices."

Husky "has agreed to make the changes that are necessary to bring them into compliance," Labor Department spokesman Brad Mitchell said. He refused to discuss whether the department's investigation was initiated as a result of a complaint.

He called the settlement amount "very large" compared to most of the department's pay cases.

"Most of the time, when we do back-wage issues, you're talking about $100,000 or so, or maybe $5,000 if it's just an individual," Mr. Mitchell said. "But when you're talking about almost $1 million, that's a significant amount of money."

- Larry P. Vellequette