Louisiana Cajun food retailers pay $571K in back wages, damages, penalties for willful, systemic violations following US Labor Department investigations

SCOTT, La. – Investigators have found more than $571,000 in back wages, liquidated damages and penalties resulting from labor violations at area Cajun food retailers just six months after the U.S. Labor Department’s Wage and Hour Division found violations at another local specialty meat processor.

The Best Stop Supermarket Inc., SHYY Inc. – doing business as Romero’s Grocery – and Don’s Specialty Meats Inc. violated the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. Violations included:

• Failing to pay workers for all hours they worked, including 15 minutes spent before and after scheduled shifts counting cash drawers.
• Deducting wages from workers’ pay illegally for cash register shortages which effectively brought their wages below the required federal minimum wage.
• Paying straight time rates, in cash “off the books,” for overtime hours worked.

Romero’s Grocery disguised wage payments as “reimbursements” to employees to avoid paying overtime and provided  federal investigators with falsified time records to falsely show they had paid workers as required by federal law. Don’s Specialty Meats made illegal pre-employment arrangements with workers to only pay for a specified number of hours on payroll checks and to pay for the remainder of their hours in cash, all at the workers’ regular hourly rates, even if overtime was worked. Investigators determined that the violations committed by The Best Stop and Romero’s Grocery were willful, prompting them to extend the period of time covered by the investigation.

“When employers fail to pay wages as the law requires, they can expect to pay double what they should have paid in the first place,” said Troy Mouton, district director for the division in New Orleans. “The Wage and Hour division will continue to use enforcement tools such as liquidated damages and civil money penalties to send a clear message – it is unacceptable for employers, in this industry or in others, to profit at the expense of the workforce who deserve a fair day’s pay for a fair day’s work.”

The Best Stop Supermarket has paid $56,386 in back wages and liquidated damages to 36 workers. The employer was also assessed $10,819 in civil money penalties for willful violations.

Romero’s Grocery paid $35,053 in back wages and liquidated damages to 33 workers. The employer was also assessed $3,927 in civil money penalties for willful violations.

Don’s Specialty Meats will pay $480,313 in back wages and liquidated damages to 133 workers.

In addition to paying back wages, liquidated damages, and penalties, all three employers entered into enhanced compliance agreements with the department to resolve the investigations. They agreed to provide annual training for managers on complying with the FLSA, and to provide FLSA handy reference guides to employees at the time of hire, among other terms.

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. Employers must maintain accurate time and payroll records. The act authorizes the division to assess civil money penalties for each repeated or willful violation of the minimum wage and overtime requirements of the act.

For more information about federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.