U.S. Department of Labor Investigation Finds New Hampshire Restaurants Violated Federal Wage and Child Labor Law

MANCHESTER, NH – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the Mammoth Restaurant Group has paid $75,012 in back wages to 63 employees to resolve violations of the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA) at two restaurants in Manchester, New Hampshire. The employer also paid $5,377 in civil money penalties for child labor violations.

Investigators found the employer violated the FLSA’s minimum wage requirements at its Pizza Express II and Grand Slam Pizza 2 restaurants in Manchester when it failed to reimburse certain expenses incurred by drivers who used their own vehicles to make deliveries. As a result, those drivers’ wages fell below the federal minimum wage of $7.25 per hour, and Mammoth owes them $69,523 in back wages. The employer also violated federal overtime requirements by paying hourly employees straight-time rates when they worked more than 40 hours per week, and by failing to pay required overtime to salaried employees the employer improperly considered exempt from the FLSA’s requirements.

WHD also determined that the Mammoth Restaurant Group violated child labor provisions of the FLSA in several instances. Mammoth employed two delivery drivers – 16 and 17 years of age – to make time-sensitive deliveries and to drive at night, and employed one 15-year-old to perform baking activities, including the use of a pizza oven and a deep-fat fryer. In addition, the restaurant group employed one 14-year-old employee to work more than 18 hours a week during school weeks, exceeding the number of hours allowed. These activities violate the FLSA’s child labor provisions for non-agricultural employment.

WHD also cited the employer for failing to accurately track all the work hours and wage payments made to employees, and to track the tips received by employees, including those the employer paid less than the full federal minimum wage. The employer also failed to post the required FLSA and Family and Medical Leave Act (FMLA) posters.

“The U.S. Department of Labor is committed to ensuring that workers get paid all the wages they have earned,” said Wage and Hour Division District Director Daniel Cronin in Manchester, New Hampshire. “Employers should evaluate their practices to make sure they are in compliance. We encourage all employers to reach out to us directly to speak with a wage and hour professional about any questions they may have. Violations like those found in this case can and must be avoided to ensure young workers stay safe on the job.”

For more information about the FLSA, child labor and other laws enforced by WHD, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Employers that discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/agencies/whd, including a search tool to use if you think you may be owed back wages collected by the Division.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.