Arizona shop owner indicted for failure to pay overtime
The owner of a Yuma, Arizona-based doughnut shop was recently indicted by a grand jury for concealment by trick, making false statements and willful failure to pay more than $27,000 in back wages to eight employees over a two-year period, according to the Yuma Sun.
Following a civil investigation by the Department of Labor in 2010, Luy was ordered to make overtime payments to his employees under the conditions of the Fair Labor Standards Act. Luy said he would give them the money owed, but later reneged on the agreement and falsely reported that the payments had been made.
According to the Department of Labor, he allegedly forced his employees to endorse payroll checks before sending copies of the checks to the department as proof of payment and redepositing the checks back into his own account.
If convicted on the charges of concealment by trick and making false statements, Luy will face a maximum of five years' in prison, a $250,000 fine or both. A conviction for willful failure to pay overtime will result in a maximum penalty of six months' imprisonment and/or a $10,000 fine, according to the news source.
Because Arizona does not have state laws regarding overtime, companies covered by the FLSA - such as Luy's Arizona Donut & Cafe - must comply with federal regulations.
Following a civil investigation by the Department of Labor in 2010, Luy was ordered to make overtime payments to his employees under the conditions of the Fair Labor Standards Act. Luy said he would give them the money owed, but later reneged on the agreement and falsely reported that the payments had been made.
According to the Department of Labor, he allegedly forced his employees to endorse payroll checks before sending copies of the checks to the department as proof of payment and redepositing the checks back into his own account.
If convicted on the charges of concealment by trick and making false statements, Luy will face a maximum of five years' in prison, a $250,000 fine or both. A conviction for willful failure to pay overtime will result in a maximum penalty of six months' imprisonment and/or a $10,000 fine, according to the news source.
Because Arizona does not have state laws regarding overtime, companies covered by the FLSA - such as Luy's Arizona Donut & Cafe - must comply with federal regulations.
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