Wage and Hour Division (WHD)
U.S. Department of Labor
McDonald’s Corp. franchisee pays more than $58,000 in back wages to workers in Denver following US Labor Department investigation
Child labor violations also cited
DENVER -- A McDonald’s Corp. franchisee, Boselli Investments LLC, has paid $58,227 in back wages to 1,258 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division that found minimum wage and record-keeping violations of the Fair Labor Standards Act at 16 locations in the Denver metro area. Child labor violations were also disclosed, resulting in an additional $8,220 in civil money penalties.
“The U.S. Department of Labor holds employers accountable when they do not pay their workers properly and when they endanger the safety of minors by employing them to perform hazardous work. Restaurant workers are among the most vulnerable in the workforce,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “This lawsuit demonstrates our commitment to protecting workers and law-abiding employers by ensuring that competitors who ignore their legal obligations do not gain a competitive advantage.”
The investigation conducted by Denver District Office personnel found that the company made illegal deductions from employees’ paychecks for work uniforms and did not pay employees for all hours worked, resulting in wages falling below the federal minimum wage of $7.25 per hour. Investigators also found that the company violated child labor provisions of the FLSA by allowing 16-year-olds to operate motor vehicles as part of their employment, and by allowing minors to operate power-driven trash compactors. The firm also violated child labor provisions by employing a 15-year-old to work past 9 p.m. during the summer, and as late as 8 p.m. on school nights. Additionally, the company failed to maintain records required by the FLSA.
Boselli Investments owns and operates seven McDonald’s restaurants in Thornton, four in Westminster, two in Federal Heights and one each in Arvada, Commerce City and Northglenn.
The company has agreed to comply with the FLSA in the future. Back wages have been paid in full.
The FLSA establishes a minimum age of 18 for workers in those nonagricultural occupations that the secretary of labor declares to be particularly hazardous for 16- and 17-year-old workers or detrimental to their health or well-being. A list of hazardous occupations prohibited for minors is available on the Wage and Hour Division’s website at http://www.dol.gov/elaws/esa/flsa/docs/haznonag.asp. Individuals 14 and 15 years of age may be employed outside of school hours in a variety of nonmanufacturing and nonhazardous jobs for limited periods of time and under specified conditions. Sixteen- and 17-year-olds may be employed for unlimited hours in any occupation other than those declared hazardous by the secretary of labor. Additional information on child labor rules can be found at http://www.dol.gov.
The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Additionally, employers must maintain accurate time and payroll records.
For more information about federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Denver office at 720-264-3250. Information also is available at 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.