A recent federal court ruling in Pennsylvania should serve as a cautionary tale for small and midsize business owners, particularly those in the food service industry. Two pizzerias located in PA, have been ordered to pay a substantial sum of $252,579 in back wages and liquidated damages to 21 employees. This legal action stems from an investigation by the U.S. Department of Labor’s (DOL) Wage and Hour Division, revealing intentional denial of proper overtime pay to employees.
21 Employees Denied Proper Overtime Pay
The violations primarily revolved around failure to compensate kitchen workers with time and a half for hours worked beyond 40 in a workweek. The employers attempted to conceal their unlawful practices by making cash wage payments to certain employees without recording their hours or amounts paid. Additionally, some kitchen staff were only partially compensated through payroll, with the rest paid in cash, a method that did not account for mandatory overtime pay. Further investigations unveiled a lack of accurate records of employee work hours and a breach of child labor provisions by employing underage workers for delivery services.
James Cain, Wage and Hour Division District Director in Philadelphia emphasized, “The pizzeria denied its workers their rightful wages by not paying them overtime as required by federal law. Unfortunately, this type of violation is common in the food service industry and deprives too many hard-working people of their full pay.”
In addition to the back wages and damages, the judgment includes civil money penalties amounting to $14,360 for willful overtime violations and $4,266 for the child labor violations. Deputy Regional Solicitor of Labor Samantha Thomas reiterates the DOL’s commitment to enforcing fair labor standards and safeguarding workers’ rights.
Key Takeaway for Business Owners
As business owners, it is crucial to adhere to employment laws, ensuring proper compensation for employees and compliance with child labor regulations. This case should serve as a reminder to prioritize employee rights and implement effective record-keeping mechanisms to avoid penalties and maintain a fair and legal work environment.
Conclusion
The recent case involving the pizzeria sheds light on the importance of adhering to wage and hour regulations. Business owners, especially those in the food service industry, need to be vigilant and ensure compliance with employment laws to avoid legal consequences. Properly compensating employees and upholding child labor provisions not only protects workers but also contributes to a positive work environment and a good reputation for the business. Stay informed about labor laws and seek legal guidance to navigate the complexities of employment regulations successfully.