North Carolina Manufacturer to Pay $22,640 in Back Wages after U.S. Department of Labor Uncovers Wage and Child Labor Violations

DENVER, NC - Wooden pallet manufacturer Tree Brand Packaging Inc. – based in Denver, North Carolina – will pay $22,640 in back wages to 48 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The employer also paid a civil penalty of $2,218 for federal child labor violations.

WHD investigators found the employer:

• Incorrectly classified one employee as exempt, and subsequently failed to pay him for any hours he worked beyond 40 in a workweek;
• Paid three employees straight time rates when they worked overtime hours;
• Illegally rounded employees' time, resulting in overtime violations when hours they worked remained unrecorded and unpaid; and
• Violated recordkeeping requirements when they failed to record all the hours worked by the hourly employees, and failed to record hours for the employees who were incorrectly classified as exempt.

In addition, WHD found that Tree Brand Packaging Inc. employed one minor employee to engage in a hazardous occupation when he operated several power-driven wood working machines, a violation of FLSA child labor requirements.

"The U.S. Department of Labor works diligently to ensure employers understand their obligations to pay their employees all the wages they have legally earned, and to provide a safe work environment when employing minors," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "We encourage all employers to review child labor law provisions and to contact the Wage and Hour Division for compliance assistance."

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.