DOL Fines Employer Over Illegal Deductions for Uniform, Training and Background Check Costs

The Department of Labor (DOL) Wage and Hour Division recently announced civil penalties against an employer for several violations of the Fair Labor Standards Act (FLSA).

The employer, an operator of five fast food franchises in Mississippi, made employees pay for uniforms, safety training, background checks, and cash register shortages, in addition to violating child labor regulations.

By making employees pay for uniforms and cash register shortages, it caused some employees’ average hourly rates to fall below the federal minimum wage. There were also overtime violations when the deductions for safety training and background checks decreased the rate-of-pay in weeks when workers earned overtime, leading the employer to pay overtime at rates lower than federal law requires.

The employer also allowed a 15-year-old employee to work past 10 p.m. several times, which violated the FLSA’s child labor work hours standards.

As a result of these violations, the employer paid $114,427 total—$51,674 in back wages and liquidated damages for 244 workers, and an assessment of $62,753 in civil money penalties.