The U.S. Department of Labor’s Wage and Hour Division has recovered $123,750 in back wages and liquidated damages for 40 workers of a Hampton Beach clothing retailer after finding the employer paid some employees cash off the books and paid straight time for overtime for hours over 40 in a workweek.
Investigators found that the employer, The Shirt Factory of Hampton Beach LLC – which operates as The Shirt Factory – also failed to pay one worker wages for nearly a month.
The division determined the employer also did not keep accurate payroll and time records for employees paid in cash. The violations of the overtime, minimum wage and recordkeeping requirements of the Fair Labor Standards Act affected low-wage retail workers at five Hampton Beach locations.
The investigation into The Shirt Factory’s illegal pay practices recovered $59,247 in overtime back wages and $2,628 in minimum wage back wages, plus equal amounts in liquidated damages. The division assessed a $18,510 civil money penalty due to the violations’ willful nature.
“All too often, the U.S. Department of Labor finds overtime violations like these in resort areas. These violations affect hard-working, seasonal and low wage workers. These workers can least afford the loss,” said Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire. “As summer begins, we encourage seasonal business establishments, such as retail clothing sellers, restaurants and hotels to contact the Wage and Hour Division to ensure they understand their obligations under the Fair Labor Standards Act.”
The Shirt Factory operates as one enterprise out of five addresses at Hampton Beach under two LLCs. The investigation includes the following businesses: The Shirt Factory of Hampton Beach LLC; doing business as The Shirt Factory, Impressions Beachwear, Extreme Beachwear; and Mohab’s Decalomania LLC, doing business as Maggie’s Beachwear and Fashion City.
Lisa Smith, SPHR, SCP
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