A Quicksburg nonprofit must pay over $40,000 in back wages to 40 workers for failing to have a valid certificate to pay them below the minimum wage.
Investigators found that Shen-Paco's certificate that allowed them to pay wages below the federal minimum had expired, leading to a violation of Section 14 (c) of the Fair Labor Standards Act's Employment of Workers with Disabilities at Subminimum Wages provisions, according to a news brief from the U.S. Department of Labor Wage and Hour Division.
Section 14 (c) of the FSLA allows employers to pay below the federal minimum wage level to workers who have disabilities.
Shen-Paco Industries Inc., at 1032 Wissler Road, is community-based organization that provides day support and employment services to adults with disabilities.
The organization offers area companies business services that include custodial services, bulk mailing, small parts assembly, packaging, collating and sorting, recycling and document destruction.
Certification employers must obtain an authorizing certificate from the Wage and Hour Division prior to paying subminimum wages, Leni Fortson with the U.S. Department of Labor stated.
Without a valid certificate, the law requires Shen-Paco to pay 40 affected workers the full minimum wage, the Labor Department stated. Shen-Paco also failed to maintain accurate records of employees’ work hours, the department stated.
The company will have to pay $46,386 in back wages.
Wage and Hour Division District Director Roberto...
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