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INVESTIGATION RECOVERS $97K IN BACK WAGES, DAMAGES FOR 330 WORKERS AFTER US DEPARTMENT OF LABOR FINDS VIOLATIONS AT 11 FROZEN YOGURT FRANCHISE LOCATIONS

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  • INVESTIGATION RECOVERS $97K IN BACK WAGES, DAMAGES FOR 330 WORKERS AFTER US DEPARTMENT OF LABOR FINDS VIOLATIONS AT 11 FROZEN YOGURT FRANCHISE LOCATIONS

 

Menchie’s Frozen Yogurt stores’ operator also assessed $19,736 in penalties for willful violations

 

A federal investigation recovered $96,973 in back wages and liquidated damages from the operator of 11 frozen yogurt shops in Washington and Oregon who allowed store managers to take a portion of workers’ tips illegally, and failed to pay some workers overtime wages when they worked over 40 hours in a workweek. The employer also did not keep an accurate record of hours worked.

 

Investigators with the U.S. Department of Labor’s Wage and Hour Division found multiple violations of the Fair Labor Standards Act by BroYo LLC – operator of nine Menchie’s Frozen Yogurt franchises in Washington and two in Oregon, and recovered back wages and damages for 330 workers.

 

The division also determined the employer violated the FLSA’s child labor regulations at four Washington locations by allowing several minors under 18 to operate trash compactors.

 

Given the nature of the violations, the division assessed $19,736 in civil money penalties.

 

“Food service workers frequently receive low wages and few benefits. BroYo LLC made the jobs of hundreds of food service workers less gainful when they allowed managers to illegally take tips from employees who earned them and denied some workers their overtime pay,” said Wage and Hour Division District Director Thomas Silva in Seattle. “This employer’s disregard for federal labor laws has had costly consequences. We encourage other food service employers to review their pay practices to prevent violations and contact the Wage and Hour Division for compliance assistance.”

 

Be Audit-Secure™

 

Lisa Smith, SPHR, SHRM – SCP

Certified EEO Investigator (EEOC)

Lead Support and Content Chief – HelpDeskforHR.com

“You cannot be audit-proof, but you can Be Audit-Secure.”


 

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