News Release

US Department of Labor recovers more than $39K in back wages for Arkansas cotton gin workers denied overtime

Service Cooperative Gin Co. Inc. violated federal wage laws, H-2A program requirements

LITTLE ROCK, AR A federal investigation has recovered $39,436 in back wages for 23 H-2A workers employed by a Marvell cotton gin, whose operator failed to comply with worker protections in the Fair Labor Standards Act.

The U.S. Department of Labor’s Wage and Hour Division found Service Cooperative Gin Co. Inc. violated federal overtime provisions that provide a partial exemption from overtime pay during the active ginning season. The division also determined that the employer failed to maintain required records of workers’ earnings and pay statements as required by the H-2A program. In addition to the back wages recovered, the department assessed $2,277 in penalties for the violations.                                        

“The Wage and Hour Division can, and will, enforce worker protections for all workers in the U.S.,” explained Wage and Hour District Director Hanz Grünauer in Little Rock, Arkansas. “Employers who utilize H-2A workers must comply with applicable laws and regulations including the FLSA. This case shows that employers who fail to comply may face costly consequences including back wages and penalties.”

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages. Workers can call the division confidentially with questions and the department can speak with callers in more than 200 languages.

Download the agency’s new Timesheet App for iOS and Android devices to ensure hours and pay are accurate.

Lea en Español

Wage and Hour Division
January 18, 2023
Release Number
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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