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News Brief

Six gas stations, convenience stores to pay $132K in unpaid overtime, damages to Sacramento-area workers after US Labor Department investigation

Employer: Six gas stations/convenience stores, all under common ownership, doing business as Arco AM/PM in the Sacramento, California area.

Sites: Lodi Oil Inc., 4931 N. Flag City Blvd, Lodi
Kamboj Oil Inc., 45 15th St., West Sacramento
Wraich Petroleum Corp., 3921 Watt Avenue, Sacramento
Broadway Petroleum Inc., 2100 Broadway, Sacramento
Mehroke LLC, 902 Newville Road, Orlanda
Sacramento Petroleum Inc., 4745 Watt Avenue North Highlands

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division found the employer violated the overtime pay requirement of the Fair Labor Standards Act by paying workers straight time rates for overtime hours. The Arco AM/PM franchisee provided investigators with falsified payroll records to create the appearance of compliance. In addition to paying straight time for overtime hours, the employer also failed to pay workers for travel time between locations when they worked at multiple sites, resulting in unpaid hours and further overtime violations.

Resolution: The employer will pay $66,075 in overtime back wages found due plus an equal, additional amount in damages, totaling $132,150 to 47 employees.

Quote: “While gas station attendants are among our nation’s lowest-paid workers, it does not mean they do not have a voice,” said Cesar Avila, assistant district director of the department’s Wage and Hour Division in Sacramento. “Our investigation shows we remain committed to ensuring that workers receive a fair day’s pay for a fair day’s work, and that employers who obey the law do not find themselves at an economic disadvantage to those who do not.”

Information: 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. The act also provides that employers who violate the law are liable to employees for back wages and an equal amount in liquidated damages.

For more information about federal wage laws administered by the Wage and Hour Division, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at

Wage and Hour Division
December 12, 2016
Release Number
Contact: Leo Kay
Phone Number
Contact: Jose Carnevali