A Little Caesars franchisee will pay $409,457 for federal wage and hour violations, the Department of Labor (DOL) recently announced.
The case shows how payroll mistakes can turn into expensive liabilities when overtime calculations and recordkeeping controls fall short.
According to an investigation by the DOL’s Wage and Hour Division, franchise operator MG Fast Food Inc. violated minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).
Federal investigators found that 32 workers at a Little Caesars in Redwood City, CA, were not properly paid. Specifically, the employer:
Further, the investigation also determined that the employer failed to keep accurate payroll records in violation of FLSA recordkeeping procedures. Discrepancies between timesheet totals and payroll records affected overtime calculations, according to DOL.
Under the settlement agreement, the company will pay $409,457 in back wages to 32 affected workers – an average of nearly $12,800 per employee.
“All workers must be paid for every hour they work, including overtime premiums when they work more than 40 hours in a workweek,” said Michael Eastwood, Wage and Hour Division Acting District Director in San Jose, California.
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