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DOL Finds Bakery Owing $80K in Back Pay

The employer paid for hours recorded on a second time card in cash, at straight time.

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An investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) found that Unger’s Kosher Bakery Inc. – a bakery and grocery store based in Cleveland Heights, Ohio – has to pay $80,726 in back wages to 27 employees. The amount stems from overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined the employer violated federal wage laws by failing to pay employees overtime when they worked more than 40 hours in a workweek. Investigators found the company generally paid straight time for all hours worked and directed some employees to use a second time card to record any hours they worked in excess of 40 in a workweek.

The employer paid for hours recorded on the second time cards in cash, at straight time. The employer violated FLSA recordkeeping requirements when they failed to maintain accurate payroll records showing the total number of hours employees worked, or the total payments made to workers.

“Our enforcement of the Fair Labor Standards Act’s wage requirements ensures that workers are paid the wages they have earned, and levels the playing field so that employers who break the law do not gain an unfair economic advantage over those who play by the rules,” said Wage and Hour District Director George Victory, in Columbus. “We encourage employers to contact us for confidential guidance, and to use the wide variety of tools we offer to help them understand their responsibilities, and comply with the law.”

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