Small and midsize business owners, take heed: the U.S. Department of Labor (DOL) is committed to ensuring that employment laws are upheld, and it recently took action against a restaurant franchisee in Utah for violations that resulted in both financial penalties and back wage recoveries.
Restaurant Franchise Violated Child Labor Laws
The operator of the restaurant franchise was fined a substantial $187,467 in civil penalties by the DOL’s Wage and Hour Division. These penalties were the result of employment law violations related to the Fair Labor Standards Act (FLSA) child labor provisions. Investigators from the Wage and Hour Division found that the restaurant had unlawfully employed 237 minors, allowing them to work beyond permitted hours and for excessive hours in a single day.
In addition to the child labor violations, the restaurant was found to have committed overtime violations. These violations occurred because the employer required employees to clock out for every break under 20 minutes without providing compensation. This missing break time was not included when paying time-and-a-half for hours worked beyond 40 in a workweek.
The consequences of these violations were significant. In total, the DOL recovered nearly $47,000 in back wages and liquidated damages for 101 employees who had been deprived of their rightful compensation due to the unauthorized break policy.
District Director Kevin Hunt of the Wage and Hour Division’s Salt Lake City office stressed the importance of employers complying with federal labor laws, especially those concerning child labor. He pointed out that while jobs can provide valuable experiences and training for young workers, employers must ensure they adhere to the full range of federal labor laws. This includes safeguarding the rights of workers to receive their full wages and ensuring that young employees’ work experiences do not interfere with their education.
The Consequences
In total, the DOL recovered nearly $47,000 in back wages and liquidated damages for 101 employees who had been deprived of their rightful compensation due to the unauthorized break policy.
To learn more about the Wage and Hour Division and determine if you may be owed back wages collected by the division, you can use their search tool. The division emphasizes that it protects workers regardless of immigration status and can communicate with workers in more than 200 languages, underlining its commitment to ensuring fair labor practices for all.
The YouthRules! initiative, launched by the DOL, plays a crucial role in promoting positive and safe work experiences for teenagers. It provides information about protections for young workers to youth, parents, employers, and educators. Through this initiative, the DOL and its partners aim to create good and secure jobs that prepare young workers to enter the workforce with confidence. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employers to help employers adhere to the law.
Conclusion
The case of the restaurant franchise serves as a stark reminder to businesses of all sizes regarding the importance of adhering to employment laws. Violating these laws not only results in severe financial penalties but also jeopardizes the rights and well-being of employees. It underscores that compliance with safety, wage, and hour standards is not just a legal obligation but a moral imperative that should never be compromised. Small and midsize business owners should take this as a lesson on the significance of following employment laws to create a fair, equitable, and legally compliant workplace.