Kansas City Grocery Store to Pay Overdue Overtime to Employees Following Federal Probe
KANSAS CITY, Kan. — A local grocery store has been ordered to compensate its employees for unpaid overtime after an investigation by the U.S. Department of Labor (DOL). The probe discovered that over 150 employees were not paid their deserved overtime pay, a violation of the Fair Labor Standards Act (FLSA). The errant supermarket has now been instructed to pay unpaid wages, damages, and penalties amounting to hundreds of thousands of dollars.
The Investigation
The investigation’s focus was Supermart El Torito, a popular grocery store operating with two branches in Kansas City and another in the capital city, Topeka. The DOL determined that the supermarket’s payment practices were inconsistent with the regulations set out by the FLSA.
According to investigators, Supermart El Torito employees were paid time-and-a-half for working between 41 to 58 hours per week, but those who worked more than 58 hours in a week were paid straight-time rates instead.
The Violation
The FLSA mandates that employees who work over 40 hours in a week should be paid one and a half times their regular rate for any excess hours. Supermart El Torito’s failure to adhere to these rules has affected 158 employees and resulted in over $77,000 in unpaid wages.
The investigation also discovered that the supermarket failed to maintain and preserve accurate employee time records, a necessity under federal law.
The Penalty
In response to these findings, the DOL’s Wage and Hour Division has ordered Supermart El Torito to pay the aggrieved employees their unpaid wages, totaling over $77,000, along with an identical amount in damages. The accumulated amount surpasses $155,000. Additionally, due to a history of repeated offenses, the local grocery store is fined a significant $187,546 penalty, bringing the total cost of these FLSA violations to over $340,000.
The Impact
Though the hefty fines might help prevent similar incidents in the future, the implications of Supermart El Torito’s malpractice underline the importance of sticking to labor laws. These regulations are designed to protect the rights and ensure fair compensation for hardworking employees. By promoting and ensuring adherence to these laws, employers and employees alike can contribute to an equitable, productive work environment.
About the Fair Labor Standards Act
The Fair Labor Standards Act is a federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.
Employers are obliged under FLSA to provide their employees with premium pay for overtime hours. When an employer fails to do so, it goes against the employees’ rights, and the employer may be subjected to penalties from the Department of Labor.
