The U.S. Department of Labor (DOL) is taking legal action against the operator and owner of four convenience stores in Michigan, alleging inaccuracies in payroll records, “off the books” payments, and failure to provide overtime pay to employees. This case, filed on September 29, 2023, in the U.S. District Court for the Western District of Michigan, highlights the importance of accurate record-keeping and compliance with wage laws in the business world.
Convenience Store Owner Owes $36,000 to 13 workers
The convenience store owner and their business are at the center of this lawsuit. The DOL’s Wage and Hour Division conducted an investigation and found multiple violations of wage and labor laws.
The investigation revealed that the convenience store owner failed to pay workers overtime at a rate of one and a half times their regular pay for hours worked beyond 40 in a workweek. This violation was found to have occurred from at least November 17, 2020, through November 16, 2022. Additionally, the company and its owner paid some workers “off the books,” making it impossible to track their earnings accurately. Furthermore, they failed to maintain precise records of employee hours worked and the corresponding pay, which is a direct violation of the Fair Labor Standards Act.
Mary O’Rourke, the Wage and Hour Division District Director in Michigan, expressed her disbelief at the situation, given convenience store owner’s role as the president of a franchise owners association. She stated, “Many would expect a business owner who leads an association of franchise owners to be well-versed in federal wage laws. It seems hard to believe that someone appointed president of a group created to share best business and management practices would violate the law so willingly.” O’Rourke also stressed the DOL’s commitment to ensuring that employees receive their full and legally earned wages, holding employers accountable for any violations.
Looking Ahead
As a consequence of these violations, the DOL’s lawsuit seeks to recover $36,528 in back wages and damages for 13 workers employed by the convenience store owner at two stores.
This case serves as a stark reminder for small and midsize business owners to prioritize compliance with employment laws, especially wage and hour regulations. Accurate record-keeping and adherence to federal wage laws are essential for maintaining the integrity of any business. Neglecting these responsibilities can result in not only financial penalties but also a tarnished reputation and legal repercussions.
Conclusion
The case of the convenience store owner in Michigan serves as a clear illustration of the importance of adhering to employment laws and maintaining accurate payroll records. Business owners must ensure that their practices align with federal regulations, protecting the rights of their employees and their own reputations in the process. Compliance is not optional; it is a fundamental obligation that all employers should uphold to foster a fair and lawful working environment.