A
Department of Labor investigation revealed that over 20 employees across six
southern New Jersey Citgo and Lukoil gas stations were owed back pay for unpaid
minimum wage and overtime
pay. The gas station owner
required the station attendants to work seven days a week for ten hours or more
each day. The gas stations illegally paid each employee a fixed salary
regardless of the hours they worked, causing their hourly wage to be less than
the federal minimum wage of $7.25 per hour. Throughout their employment, these
workers were also denied compensation at one and a half times their regular
rate for every hour worked above forty per workweek, in violation of the Fair
Labor Standards Act (FLSA).
In addition to paying workers incorrectly for all hours worked, the
employer also failed to maintain required payroll records. Under the terms of
the settlement between the employer and the Department of Labor, 24 employees
will receive $735,512 in unpaid minimum wage and overtime compensation and
$735,512 in liquidated damages. The gas stations were also forced to pay an
additional penalty of $8,976 for the violations and have agreed to install an
electronic timekeeping system in each gas station, change break policies to
ensure that employees are paid when they are unable to take breaks, and provide
information about employees’ rights under the FLSA.
A representative for the Department of Labor said, “we will
vigorously enforce the law to ensure txhat companies that comply compete on a
level playing field and to safeguard employees’ hard-earned wages.”
