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ESA-WHD New Release: [02/28/2000]
Contact Name: John M. Chavez
Phone Number: (617) 565-2075
Release Number: BOS 2000-028
WESTWOOD, MASSACHUSETTS, COMPANY AGREES TO PAY 649 EMPLOYEES OVER $246,000 IN BACK WAGES FOR FEDERAL OVERTIME VIOLATIONS; ALSO AGREES TO PAY FINES TO U.S. LABOR DEPT. FOR CHILD LABOR VIOLATIONS
BOSTON, MA — Lids Corporation, based in Westwood, Massachusetts, with 300 retail baseball hat stores located in shopping malls throughout the United States, has agreed to pay 649 employees a total of $246,477.60 in back wages to rectify alleged violations of the federal overtime law.
According to Corey Surett, Massachusetts District Director for the U.S. Labor Department's Wage and Hour Division, the company has also agreed to pay the Department $7,200 in civil money penalties for child labor violations found in some of its stores.
Surett noted that Lids Corporation was investigated by the Wage and Hour Division for compliance with the federal Fair Labor Standards Act (FLSA). In the course of that investigation, it was determined that certain store managers were improperly classified by the company as being exempt from coverage under the law. As a result, these managers, who were paid fixed salaries, were often required to work over 40 hours in a single work week without being compensated for the extra hours worked. A self audit performed by the company identified the 649 employees who were consequently due back wages.
He indicated that the investigation also revealed 32 minors, 14 and 15 years of age, were found to be working in violation of the hours and time standards of the child labor provisions of the FLSA. Surett stressed that the hours and time restrictions prohibit employment of workers under the age of 16 before 7AM or after 7PM (after 9PM June 1 through Labor Day), prohibit working more than 3 hours on a school day or more than 8 hours on a non-school day, and also prohibit working more than 18 hours in a school week or more than 40 hours in a non-school week.
Last summer, Secretary of Labor Alexis M. Herman launched the Department's "Safe Work/Safe Kids" initiative to help ensure teens have a safe and positive work experience. The initiative embraces a strategy of enhanced enforcement, increased education, strong partnerships and heightened public awareness to increase compliance with federal child labor laws.
Passed in 1938, the FLSA -- also known as the federal wage and hour law -- today covers more than 110 million workers nationwide, explained Surett. The law, enforced by the Labor Department's Wage and Hour Division, sets the federal minimum wage at $5.15 per hour and generally requires overtime for hours worked over 40 in any workweek. It also prohibits child labor abuse and requires employers to keep adequate time and payroll records.
Surett stressed that Lids Corporation cooperated fully with his agency during the investigation and has taken steps to ensure that similar violations do not occur in the future.
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