Saipan and Tinian employer to return $70K in back wages to 24 workers

Employer: Long Feng Corporation, doing business as New XO Market in Saipan and Tian Hong Market in Tinian

Site: Grocery store, poker arcade and coin laundry establishments in Saipan and Tinian

Investigation findings: Investigators from the Wage and Hour Division's Saipan Field Office found that the employer failed to meet his obligations under the federal Fair Labor Standards Act to pay minimum wage and overtime, and had employees enter into agreements giving up their entitlement to overtime premium wages for hours worked beyond 40 in a workweek. The employer was also cited for record-keeping violations for not accurately recording all hours worked by employees. The agency found $70,197 in back wages due to 24 workers for minimum wage and overtime violations.

Resolution: The employer has agreed to pay all back wages found due and has agreed to full compliance.

Quote: "When a business is subject to the wage provisions of the FLSA, an employer cannot lawfully enter into separate wage agreements with their workers that undermine their basic rights under the law," said Terence Trotter, the division's district director in Hawaii.

Information: Long Feng Corporation operates 2 retail stores that offer groceries, laundry services and poker machine amusement games. 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 http://www.dol.gov/whd.

FLSA: The FLSA requires most employees, with limited exceptions, be paid at least the federal minimum wage, which is currently set at $6.05 per hour in the CNMI, for all hours worked, plus time and one half their regular rates of pay for hours worked beyond 40 per week. An employee's regular rate is determined by dividing weekly compensation, including hourly rates, commissions and incentive pay by the total hours worked in a workweek. Employers are also required to provide a notice to employees of the FLSA minimum requirements by posting the FLSA poster, maintain accurate time and payroll records, and adhere to work hour limitations and specific occupation restrictions deemed hazardous for workers under the age of 18.