In a stern warning to small and midsize business owners, a recent U.S. Department of Labor (DOL) investigation in New Hampshire has resulted in the recovery of $215,675 in back wages and liquidated damages for 47 workers who were denied overtime pay and subjected to child labor violations. The operators of two restaurants are facing the consequences of their actions, which serve as a stark reminder of the penalties for violating employment laws.
Restaurant Violates Various Employment Laws
The DOL’s Wage and Hour Division conducted the investigation, uncovering multiple violations of the Fair Labor Standards Act (FLSA) by several restaurants. The violations included:
- Failure to pay certain employees, including cooks, dishwashers, and bussers, at the proper rate of time and one-half their regular pay for hours worked over 40 in a workweek.
- Incorrectly calculating overtime for tipped employees by basing it on their cash wage rates instead of their regular pay rates.
- Employing four minors aged 14 and 15 to work beyond legally permitted hours, including as late as 10 p.m. on school days, violating child labor laws.
- Neglecting to maintain complete and accurate records of hours worked and payments made to employees.
Wage and Hour Division District Director Steven McKinney in New Hampshire, expressed his concern, stating, “The restaurants deprived dozens of employees of their rightful pay, making it much harder for these workers to support themselves and their families. The more than $215,000 in wages and liquidated damages recovered for these workers by the department will go a long way towards making them whole.”
In addition to the recovered wages and damages, the DOL assessed civil money penalties totaling $29,795 against the employers. The penalties were divided between willful overtime violations, resulting in $26,631 in fines, and child labor violations, resulting in $3,164 in penalties.
Overtime Guidelines
The FLSA, a cornerstone of employment law, mandates that most employees in the United States be paid at least the federal minimum wage for all hours worked. It also requires employers to provide overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 in a workweek.
McKinney stressed the importance of compliance, stating, “We are committed to helping employers understand their responsibilities under federal labor law and urge them to proactively contact our office for compliance assistance.” He also highlighted the FLSA’s restrictions on child labor, emphasizing that young employees must be protected to preserve their educational opportunities.
The FLSA prohibits children under the age of 14 from working in most situations and imposes restrictions on working hours for 14- and 15-year-olds. These young workers are not permitted to work past 9 p.m. from June 1 through Labor Day and beyond 7 p.m. during the rest of the year. Furthermore, their working hours are limited to ensure they can balance their education, with restrictions on school days and non-school days.
Conclusion
The case of the restaurants serves as a stark reminder to small and midsize business owners about the importance of adhering to employment laws. Neglecting to pay employees their rightful wages and violating child labor regulations can lead to severe financial penalties and damage to a business’s reputation. Prioritizing compliance with labor laws is not just a legal obligation but also a moral duty to ensure fair treatment of employees and protect their well-being.