Alabama gas station agrees to pay $27,000 in back wages
Raceway 700 gas station on Mobile Highway in Montgomery, Alabama has agreed to pay six employees $27,236 in back wages after an investigation by the U.S. Department of Labor's Wage and Hour Division. Investigators found the company's payroll practices were in violation of the Fair Labor Standards Act (FLSA) in regards to its overtime, recordkeeping and minimum wage provisions.
The Wage and Hour Division learned that the employer had made an unlawful agreement with nonexempt hourly employees to avoid paying them overtime rates - one-and-a-half times the regular pay rate - for employee attendance beyond 40 hours in a standard workweek. Additionally, investigators found that register shortages were deducted from employees' paychecks, which dropped the pay rate below federally mandated minimum wage.
"Employers are legally obligated to pay for all hours worked, including overtime when employees work more than 40 hours in a week, and workers cannot legally waive their rights under the FLSA," said Ken Stripling of the Wage and Hour Division's Birmingham District Office.
Stripling says that the agency will use every enforcement tool at its disposal to penalize employers who violate labor standards. In this case, Raceway 700 agreed to pay back wages, keep accurate records and establish a new way of dealing with register shortages.
Other employers can avoid investigation that might lead to fines and back wages by adhering to FLSA provisions.
The Wage and Hour Division learned that the employer had made an unlawful agreement with nonexempt hourly employees to avoid paying them overtime rates - one-and-a-half times the regular pay rate - for employee attendance beyond 40 hours in a standard workweek. Additionally, investigators found that register shortages were deducted from employees' paychecks, which dropped the pay rate below federally mandated minimum wage.
"Employers are legally obligated to pay for all hours worked, including overtime when employees work more than 40 hours in a week, and workers cannot legally waive their rights under the FLSA," said Ken Stripling of the Wage and Hour Division's Birmingham District Office.
Stripling says that the agency will use every enforcement tool at its disposal to penalize employers who violate labor standards. In this case, Raceway 700 agreed to pay back wages, keep accurate records and establish a new way of dealing with register shortages.
Other employers can avoid investigation that might lead to fines and back wages by adhering to FLSA provisions.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.