Medical exams and drug test: Not paying workers cost company $200K Repeat offender didn’t track compensable time correctly Many employers require employees to have physical exams, drug tests or other procedures before reporting to work. This time is typically compensable, especially if tests are done during normal work hours. Companies that don’t reimburse workers for these tests and exams shouldn’t be surprised if the Dept. of Labor (DOL) comes knocking. Saint Trading Co., a hotel staffing agency based in the U.S. Commonwealth of the Northern Mariana Islands, didn’t pay workers for time they spent receiving required medical exams during the workday. The company also failed to pay employees for trainings and certifications they received on the clock, and it didn’t track hours and pay overtime correctly for time employees spent at different job sites. For all these violations, the agency had to pay $163,327 in back wages and damages to 73 employees. And because it was a repeat offender, the DOL assessed an additional $40,150 in penalties. What counts as hours worked. According to the DOL, if an employer requires workers to undergo specific tests or procedures (e.g., physicals, fingerprinting, drug screens), all time spent on them usually counts as hours worked. This is often true even if it’s outside of normal work hours. Reason: Employees’ freedom is limited while they’re doing these activities that are mandated by their employer. More info: bit.ly/exams580