Frank Donio, a wholesale produce broker from Hammonton, New Jersey, recently agreed to pay 519 workers $657,069 in back wages for minimum wage and overtime violations of the Fair Labor Standards Act.
The U.S. Department of Labor's Wage and Hour Division investigated the business' Hammonton packing facility and found that the employer was not properly paying workers, who were hired through a temporary employment agency. The employees were paid $6.50 per hour rather than the $7.25 they are owed for their time and attendance.
"An employer does not relinquish responsibility to pay workers according to the law simply because those workers have been hired through a third party," said Pat Reilly, director of the Wage and Hour Division's Southern New Jersey District Office, in a recent press release. "Temporary employment agencies often provide workers for a variety of low-wage jobs in industries where labor violations are most prevalent."
Employers in wholesale environments must understand how the law applies to their companies in order to remain in compliance. If this is a challenge, they might consider outsourcing human resources to benefit from expert advice.
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