Upper Crust pizza chain owes employees $850,000 in back wages

The U.S. Department of Labor (DOL) recently filed court records alleging The Upper Crust Pizzeria, a gourmet pizza chain based in the Northeast, owes 67 employees an estimated $850,000 in back wages, according to the Boston Globe. This stems from a previous investigation by the DOL's Wage and Hour Division, which found that the employer was not properly paying workers minimum wage for their time and attendance or overtime wages if they worked more than 40 hours in a week.

The Fair Labor Standards Act (FLSA) mandates employees receive at least $7.25 per hour for all of their hours worked in addition to time-and-a-half wages if that total goes into overtime. The investigation of The Upper Crusts' payroll practices claims the company owed its workers $425,000 for unpaid work time, as well as an equal amount for damages and $37,000 in penalties, the Globe reports.

"The department has been engaged in protracted settlement negotiations with the parties involved in an attempt to resolve the matter and recover back wages and liquidated damages for the workers," agency spokesperson Ted Fitzgerald told the source.

Companies can avoid FLSA violations by adhering to state and local labor laws and using payroll processing equipment that can generate records to prove continued compliance.