Kapolei wholesaler must pay $73K for overtime pay violations
The U.S. Department of Labor has ordered a Hawaii food wholesaler to pay $73,000 in back wages and penalties for denying overtime pay to 11 warehouse employees.
Family Food Co. Inc. of Kapolei failed to pay these warehouse workers at least time-and-a-half for work beyond 40 hours in a work week, which is a violation of the Fair Labor Standards Act, according to a DOL news brief.
Investigators from the department also determined the employer illegally gave workers the option of accepting cash payments instead of clocking overtime hours to avoid paying taxes on overtime earnings.
Additionally, the employer violated record-keeping requirements by keeping inaccurate time and payroll records.
“Employers cannot reduce their labor costs by entering into illegal agreements with workers that undermine federally mandated wage standards,” said Wage and Hour Division District Director Terence Trotter in a statement. “Overtime worked should be overtime paid.”
Back wages recovered include $36,685 in unpaid overtime wages for 11 employees, in addition to $36,685 in damages for the 11 employees, plus $8,877 in penalties for the reckless disregard of the law.
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The Family Food Co. in Kapolei, incorporated in 1984, according to records, wholesales imported bulk goods and repackages them for sale to food retailers.