Hey Compliance Warriors!
Have you (or Big Boss) ever thought (or said) “It’s no big deal! What would the fines be? Maybe a few thousand dollars? That’s not enough to get the DOL to come here to investigate a few ‘questionable’ practices. LOLOLOL”
If that has been a conversation in your pale of business, then you will want to read the DOL investigation below. Sure, the back wages came to a measley $3,560. BUT, do you see the Civil Money Penalties? $22,082 + $3,560 = $25,642. Not quite as funny or measley!
Employer name: 1802 Atlantic Co., operating as Cinnabon & Auntie Anne’s
Employer address: 1802 Atlantic Ave., Virginia Beach, VA 23451
Investigation findings: U.S. Department of Labor Wage and Hour Division investigators in Richmond found the employer permitted workers between the ages of 14 and 17 to operate a power-driven dough mixer. They also failed to pay two non-exempt hourly employees an overtime premium of time-and-one-half for hours worked over 40 in a work week. 1802 Atlantic Co. also did not maintain accurate records, including hours worked and the minors’ birth dates. Their actions violated the Fair Labor Standards Act’s child labor provisions. The employer also failed to post information about the Family and Medical Leave Policy.
Back Wages Due: $3,560
Civil Money Penalties: $22,082, assessed by the division for the child labor violations.
“Federal child labor laws protect minor-aged workers from workplace dangers and the risks they present,” explained Wage and Hour Division District Director Roberto Melendez in Richmond, Virginia. “Work experience is intended to provide a useful learning opportunity but not at the expense of their education and well-being.”