Wage and Hour Division (WHD)

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BOSTON -- ISF Trading Co., a sea urchin processing company based in Lubec, Maine, has agreed to pay 62 employees a total of $26,420 in overtime back wages due under the federal Fair Labor Standards Act (FLSA). Based on the company’s history of prior FLSA violations, the U.S. Department of Labor also has assessed an $11,594 civil money penalty against the employer.

An investigation by the department’s Wage and Hour Division found that workers at the Lubec processing plant were paid straight time for overtime hours worked, were not paid for all hours worked as recorded on time cards, and were treated by the company as independent contractors. The employer also was found not to have maintained all required employment records regarding these workers.

“Our investigation showed that these workers were not independent contractors but were, in fact, employees subject to the protections of the FLSA,” said George Rioux, the Wage and Hour Division’s district director for Boston and northern New England.

The FLSA requires that employees be paid at least the federal minimum wage, and time and one-half their regular rates of pay for hours worked beyond 40 per week. The law also requires that employers maintain accurate records of employees’ wages, hours and other conditions of employment. For purposes of the FLSA, there are a number of factors for determining whether an individual is an independent contractor or an employee. In this case, the Wage and Hour Division found that the company’s workers did not meet the legal factors for independent contractor status.

After being informed of the investigation’s findings, the company, which cooperated fully during the investigation, agreed to pay the back wages found due and to come into full compliance with the requirements of the FLSA in the future. The back wages cover the period between Oct. 14, 2007, and Feb. 23, 2008.

Since the company has a prior history of FLSA wage violations dating from 2006, the Wage and Hour Division assessed a civil money penalty of $11,594 that must be paid to the Labor Department.

Rioux stressed that the State of Maine Department of Labor’s state monitor advocate, Juan Perez-Febles, was instrumental in assisting his office throughout this investigation. “Since many of these workers speak only Spanish, he helped us interview the employees, and he has pledged to assist in making sure that the workers finally receive their back wages,” said Rioux.

For more information about the FLSA, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov, and an interactive “e-laws advisor” providing detailed information about FLSA compliance is available at www.dol.gov/elaws/flsa.htm.

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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.