The Department of Labor's Wage and Hour Division recently
investigated San Francisco grocery chain Casa Guadalupe and found the employer was once again violating the Fair Labor Standards Act (FLSA) overtime and recordkeeping provisions in the three of its Mission District locations. The DOL has discovered similar violations in the past, for which it was determined owner Pedro Gil owed three employees more than $6,000 in back pay.
This second incident is on a larger scale with the DOL ordering Gil to pay 25 employees $110,071 in back wages and liquidated damages. To prevent these incidents from occurring in the future, Casa Guadalupe stores will hand
employee attendance records over to a third-party monitor that will audit them and ensure calculations are accurate and complete. Gil has also been required to take FLSA training.
"This employer's deliberate disregard for the law and for workers' rights is inexcusable," said Susana Blanco, director of the Wage and Hour Division district office in San Francisco. "The affected employees will now get the overtime wages that they were entitled to receive by law."
Employers that have previously come under question for payroll violations should take extra care when calculating pay for workers' time and attendance. If small businesses lack the expertise or resources to handle the paperwork themselves, they can consider outsourcing human resources tasks to avoid non-compliant practices.
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