Please note: As of January 20, 2021, information in some news releases may be out of date or not reflect current policies.

News Brief

Warehouse employees in McAllen, Texas, get thousands in back wages following US Labor Department investigation

G R Produce paid employees below minimum wage and no overtime

Employer: G R Produce

Site: McAllen, Texas

Investigative findings: G R Produce violated the Fair Labor Standards Act by not paying its employees the federally required minimum wage and overtime, according to an investigation by the U.S. Department of Labor's Wage and Hour Division office in McAllen, Texas. The employer paid its warehouse workers only $7 per hour which is below the federal minimum wage requirement of $7.25 per hour. G R Produce also failed to pay employees overtime at time and one-half their regular wages for hours worked over 40 in a workweek, as the law requires. They also failed to maintain required payroll records. Additionally, the investigation found that two employees were incorrectly considered by the employer to be exempt from overtime requirements because they were paid a salary, when in fact they didn't meet the requirements under the law for the exemption to apply. G R Produce has agreed to pay all back wages due, properly categorize workers and comply with the provisions of the FLSA in the future.

Investigation results: $34,307 in back wages to 38 employees

Quotes: "Supporting a family while earning the minimum wage is hard to do in today's economy and even more so for employees who are paid less than the legally required minimum wage," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "We are working hard to ensure that employees like these vulnerable workers receive a fair day's pay for a fair day's work. Other employers who may be paying workers illegally in this manner should take note — we will not tolerate these practices."

Information: 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 McAllen District Office at 956-682-4631. Information also is available at http://www.dol.gov/whd/.

Agency
Wage and Hour Division
Date
June 2, 2015
Release Number
15-0839-DAL
Media Contact: Juan Rodriguez