The U.S. Department of Labor investigated and took legal action against the United Fishing Agency, a seafood trader based in Hawaii, for violating the Fair Labor Standards Act. In the DOL vs. United Fishing Agency case, the investigation revealed that the employer had denied 33 workers their rightfully earned overtime wages by failing to include bonuses in the calculation of their overtime pay.
These bonuses were provided to encourage employee productivity. Additionally, the employer failed to maintain accurate payroll records, another violation of labor standards. As a result of these violations, the employer owed the workers $58,859 in unpaid overtime wages and an equal amount in liquidated damages. In addition to the back wages and damages, United Fishing Agency was assessed $14,805 in civil money penalties due to the reckless nature of these violations.
Lessons Learned from the Case:
- Employers should accurately calculate overtime wages by including all eligible components, such as bonuses, shift pay, and on-call pay. This ensures that employees are compensated fairly for their extra hours of work.
- Maintaining accurate payroll records is crucial to complying with labor standards. Failing to do so not only violates regulations but can also lead to financial penalties and damage to a company’s reputation.
- Employers should make use of educational resources provided by labor authorities to stay informed about labor laws and standards. Ensuring compliance with these regulations not only prevents costly violations but also promotes a fair and respectful work environment.
If you want to know more about overtime regulations, read our guide on Hawaii Overtime Laws.
