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DOL Recovers Over $485K in Back Wages for New York City Dollar Store Workers

October 15, 2010

In recent wage and hour news that our Santa Ana employment attorneys have been following, the U.S. Labor Department (DOL) has recently recovered over $485,000 in a wage and hour settlement for employees who work and have worked for dollar stores in New York City from June of 2006 to May of this year.

The lawsuit was reportedly filed last year against various dollar and 99 cent stores and owners in New York City. The defendants are being accused of failing to pay employees according to the Fair Labor Standards Act (FLSA) wage and hour law requirements, even after previous DOL investigations of individual establishments brought attention to the laws. The DOL reportedly took further legal action against the defendants because many reportedly claimed to operate single store establishments, while actually operating retail enterprises with many locations around the city, failing to compensate their employees properly, and violating the FLSA.

According to the FLSA wage and hour laws, covered employees must be paid according to the federal minimum wage of $7.25 per hour, as well as one and one half times their regular pay rates for any time worked over 40 hours per week. Employers are also required by FLSA law to maintain accurate records of wages, all hours worked, and other conditions of employment, and prohibits employers from engaging in retaliation against employees who stand up for their rights.

The DOL filed the lawsuit after discovering evidence of wage and hour violations after workers in the companies' retail stores were being paid hourly wages that were less than the federal minimum wage, and were required to work over 40 hours without receiving proper compensation. The employers also allegedly failed to keep accurate records of their employees' activity, in regard to wages paid, hours worked, and other conditions of employment.

The defendants will pay a total of $497,607 in back pay and damages, for minimum wages, overtime compensation, liquidated damages and post-judgment interest, and must install timekeeping systems in their stores to track hours worked by employees. According to the consent judgments, entered by the court, the defendants are also prohibited from violating FLSA laws in the future.

Howard Law, PC represents employees in Orange County, California who have experienced wage and hour violations and are seeking recovery. Let our team of experienced Riverside labor & employment attorneys aggressively represent you and protect your rights.

US Department of Labor Recovers More than $485,000 in Back Wages for Employees of New York City Dollar Store Chain, U.S. Department of Labor, Wage and Hour Department News Release, October 13, 2010

Related Web Resources:

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)

Department of Labor (DOL): Wage and Hour Division (WHD)