Wage and Hour Division (WHD)
U.S. Department of Labor
MONTGOMERY, Ala. -- The U.S. Department of Labor's Wage and Hour Division has found violations of the Fair Labor Standards Act's overtime, minimum wage and record-keeping provisions at the Raceway 700 gas station on Mobile Highway in Montgomery. Jaymahesh LLC, doing business as Raceway 700, has agreed to pay six cashiers $13,618 in back wages plus an equal amount in liquidated damages, totaling $27,236.
An investigation by the division found that the employer had made a verbal agreement with nonexempt hourly employees that violated the FLSA because it did not require the payment of overtime wages when the employees worked more than 40 hours per week. The employer also made deductions during some workweeks from employees' pay to make up for register shortages, which caused pay to fall below the federally mandated minimum wage of $7.25 per hour. In addition, the employer failed to maintain accurate records of employees' hourly rates and wages paid.
"Employers are legally obligated to pay for all hours worked, including overtime when employees work more than 40 hours in a week, and workers cannot legally waive their rights under the FLSA," said Ken Stripling, director of the Wage and Hour Division's Birmingham District Office. "The Wage and Hour Division is using every enforcement tool available against companies that choose not to comply with the FLSA, so that employers who do comply are not placed at a competitive disadvantage."
In addition to paying the back wages and penalties, Jaymahesh LLC has agreed to change its business practices, handle register shortages through a different disciplinary method, and keep accurate time and payroll records that include all hours worked by hourly employees.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour as well as time and one-half their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for back wages and an equal amount in liquidated damages.
The department has a smartphone application to help employees independently track the hours they work and determine the wages they are owed. Available in English and Spanish, users conveniently can track regular work hours, break time and any overtime hours for one or more employers. This new technology is significant because, instead of relying on their employers' records, workers now can keep their own records. This and other Labor Department apps are available at http://www.dol.gov/dol/apps.
Accessible and searchable information on enforcement activities by the Department of Labor is available at http://ogesdw.dol.gov/search. For more information on the FLSA and other federal laws administered by the Wage and Hour Division, call the division's toll-free helpline at 866-4US-WAGE (487-9243) or visit http://www.dol.gov/whd.
U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.