Wage and Hour Division (WHD)

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BIRMINGHAM, Ala. -- Krispy Kreme Doughnuts franchisee McAleer of Birmingham Inc. in Hoover, Ala., has paid $32,021 in workers’ back wages and penalties following a determination by the U.S. Department of Labor that youth employment, work hours and overtime violations of the Fair Labor Standards Act (FLSA) occurred at three stores in the area between September 2004 and September 2006.

“Younger employees must have safe work experiences that do not expose them to hazardous duties,” said Oliver Peebles III, acting district director of the department’s Wage and Hour Division in Birmingham. “In addition, every employee covered by the FLSA deserves to be compensated for all hours worked, and each must receive overtime compensation for hours worked beyond 40 in a workweek.”

Investigators found eight minors employed in violation of the FLSA’s youth employment standards. Three workers between the ages of 16 and 17 were found to have operated power-driven paper balers and compactors, while two others – ages 15 and 17, respectively – operated a power-driven dough mixer and a motor vehicle. The same 15-year-old, along with three other 14- and 15-year-olds, also worked in excess of the youth hours standards. One of the 15-year-olds worked on the employer’s warehouse loading dock, which is prohibited for employees under the age of 16. Penalties for these violations totaled $12,595.

During the investigation, the Wage and Hour Division determined that salaried non-exempt delivery drivers were not paid overtime for hours worked over 40 in a workweek. As a result, seven workers were owed $14,050 in back wages. In addition, hourly non-exempt employees were not compensated for meal periods of less than 30 minutes, resulting in the company owing 52 employees a total of $5,376 in back wages.

The FLSA requires employees to be paid the federal minimum wage for all hours worked and, unless exempt, time-and-one-half their regular rates of pay for hours worked over 40 per week. Employers must also maintain accurate time and payroll records. The department’s youth employment regulations identify 17 hazardous occupations prohibited for workers under the age of 18.

For more information about the FLSA and other laws administered by the Wage and Hour Division, call the Department of Labor’s toll-free help line at (866) 4US-WAGE (487-9243), visit the Internet at www.wagehour.dol.govor contact the Wage and Hour Division’s Birmingham District Office at 955 22nd St. N., Suite 656; telephone (205) 731-1305. The office serves the states of Alabama and Mississippi. Information about compliance with youth employment laws is available at www.youthrules.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.