HAMPTON — A Hampton Beach retailer was fined about $18,000 for wage violations, and an additional $123,750 in back wages and damages were recovered and paid to 40 workers.
The U.S. Department of Labor announced Tuesday it fined The Shirt Factory of Hampton Beach LLC for violating the Fair Labor Standards Act. Doing business at multiple locations at Hampton Beach, the employer also “paid some employees cash off the books and paid straight time for overtime,” when workers exceeded 40 hours in a week.
The businesses’ owner, Mohab Sharabia, said the investigation went on over the winter.
“No comments at this time on the investigation process and report,” Sharabia said. “Due to the high cost of disputing this report, we made a business decision not to continue with litigation.
“We are determined, though, to respect and obey the laws and be in compliance with both federal and state laws. For fairness and equality in applying the law, all other seasonal beach businesses should also be investigated and their reports published.”
The case was investigated by the U.S. Department of Labor’s Wage and Hour Division out of Manchester, New Hampshire, which covers the three-state territory of northern New England, according to Ted Fitzgerald, spokesman for the Department of Labor. This is the first time the division looked into this employer, he said, with the investigation covering from Dec. 11, 2018, through Dec. 10, 2021. Back wages and damages recovered relate...
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