Tennessee Butcher, Restaurant Pays $88,276 in Wages, Damages and Penalties After U.S. Department of Labor Finds Wage, Child Labor Violations

SUMMERTOWN, TN – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Shaffer Farms Custom Meats LLC and Shaffer Farms Texas Bar-B-Q restaurant has paid $69,514 in back wages and liquidated damages to 21 employees for violating the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The Summertown, Tennessee-based butcher and restaurant will also pay a civil penalty of $18,762 for the willful nature of the wage violations and for federal child labor violations.

WHD investigators found the employer violated the overtime requirements of the FLSA when it paid workers for their first 40 hours of each workweek as regular pay, but then instead of paying overtime, coded any additional hours as a “bonus,” paid straight time rates. The employer paid one employee for their first 40 hours on the payroll, but then paid for additional hours at straight time, as an “independent contractor.” The employer also failed to include certain production bonuses employees earned in the calculation when they determined workers’ overtime rates. This exclusion resulted in employees being paid overtime rates lower than those required by law.

Additionally, WHD found that Shaffer Farms employed an employee younger than 18-years-old as a butcher, where he performed multiple functions prohibited by FLSA child labor requirements. Investigators found the minor operated a power-driven hoisting apparatus, a power-driven meat grinder, a meat slicer, and a power driven commercial meat saw, all of which are prohibited for workers under 18. The employer also failed to maintain required time and payroll records, resulting in recordkeeping violations.

“Child labor laws exist to strike a balance between providing meaningful work experience for young people and keeping them safe on the job,” said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. “Our wage laws ensure that employees are paid for their work, and that employers compete on a level playing field. Investigations like this one send a clear message that employers must be vigilant about compliance with all of their legal responsibilities. We encourage all employers to review their obligations and to contact us for compliance assistance.”

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

For more information about the FLSA, child labor, and other laws enforced by the WHD, 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.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act, and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.