JACKSON - A Hammond-based company will have to pay $25,032 in back wages to 21 employees at its Jackson, Mississippi terminal.

After an investigation by the U.S. Department of Labor's Wage and Hour Division, it was determined that Statewide Transportation Inc. violated overtime and record-keeping requirements.

According to a news release, the company misapplied the Fair Labor Standards Act motor carrier exemption and subsequently failed to pay drivers of smaller delivery vehicles overtime when they worked more than 40 hours. Officials say the company failed to maintain accurate payroll records and failed to display an FLSA poster in the work area.

“The misapplication of exemptions can lead to costly violations when employers are not fully aware of their responsibilities and the requirements of the law,” said Wage and Hour Division District Director Audrey Hall, in Jackson.

Statewide Transportation Inc. also failed to have a general or specific Family and Medical Leave Act policy in place, as required.