Produce wholesaler to pay workers more than $130K in back wages, damages, penalties after US Labor Department investigation

BOSTON — Fruit and vegetable wholesaler Snipped Fresh Produce Inc. had employees cut, weigh and package vegetables for $8 per hour, and many worked more than 40 hours per week for no overtime pay.

An investigation by the U.S. Department of Labor's Wage and Hour Division found the workers at the Chelsea-based company had not received overtime pay, a violation of the Fair Labor Standards Act. The investigation also determined that the firm fired an employee in retaliation and improperly classified two employees as managers, which affected overtime pay.

To correct the violations, Snipped Fresh Produce has entered into a settlement with the Wage and Hour Division. The company will pay 57 employees a total of $47,222 in back wages and an equal amount in liquidated damages. The firm will also pay $25,000 in compensatory and punitive damages to an employee whom they fired after the investigation began and more than $11,000 in civil money penalties to the department.

"Underpaying employees harms workers who live from paycheck to paycheck," said Carlos Matos, director of the Wage and Hour Division's Boston District Office, which conducted the investigation. "Employers who don't pay legally earned wages also cheat their competitors, who suffer for following the law."

The settlement orders the following:

• Hire an independent consultant to monitor company compliance with the FLSA and provide quarterly reports to the Wage and Hour Division.
• Prohibits the company from keeping recovered wages and damages.
• Forbids employee kickbacks and retaliation against workers.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour and overtime at time and one-half their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for back wages and an equal amount in liquidated damages.

Section 13(b) (12) of the FLSA provides an exemption from the overtime requirements of the FLSA for any employee employed in agriculture. No such exemption applies to employees of nonagricultural businesses, such as Snipped Fresh Produce, that package and distribute agricultural products exclusively.

For more information about the FLSA and other federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or its Boston District Office at 617-624-6700. Information also is available at http://www.dol.gov/whd/.

• Read this news release in Spanish.