Fur Company Pays Almost $1 Million for FLSA Cover-Up

The DOL Wage & Hour Division (WHD) penalized a Boston employer severely for blatant FLSA violations, including minimum wage and overtime. The fine included amounts related to liquidated and punitive damages (for willful conducted) and totaled $925,000.

WHD reached a consent judgment in federal court with Boston Hides & Furs Ltd. and its owner. The lawsuit dated back to November 2012. Fourteen employees worked 60 hours per week but received only a daily cash payout ranging from $50 to $70. Ten workers were fired after cooperating with the WHD investigation. That constituted unlawful retaliation.

“For several years, these workers performed hard, dirty work for long hours without being paid overtime or even the legally required minimum wage. They did so for an employer who then fired most of them after we started our investigation,” said George Rioux, WHD's district director in Boston. “Such treatment harms the workers involved and undermines the efforts of law-abiding employers who pay their workers properly.”

WHD cited another violation that is common in these types of cases: failure to maintain proper documentation of hours worked. When an employer fails in its recordkeeping duties, two bad things often result:

  • WHD or a court of law issues a penalty
  • Employees' personal records of hours worked are presumed to be accurate

This large penalty serves as a great reminder of the importance of time and attendance systems and employee time tracking. Timekeeping software is an essential element to managing the modern workplace. Infinisource's TimeForce system is one way you can succeed where many employers fail in their recordkeeping duties. Click here to view a demo or request a quote.