Grocery Store Pays $20K After DOL Investigation

In Fairbanks, Alaska, an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) has culminated in the imposition of $20,490 in civil penalties upon the Alaska Commercial Company, which operates 33 grocery and general merchandise stores across the state, for pervasive child labor violations under the Fair Labor Standards Act (FLSA).

The Anchorage-based company was found to have employed 30 minors in violation of the time standards set by the FLSA. These underage employees were working beyond permissible hours: over 8 hours daily and 40 hours weekly during non-school periods and exceeding 3 hours daily and 18 hours weekly during school – all clear FLSA violations.  Additional infringements were identified when numerous minors worked outside of allowable hours, before 7 a.m. and after 7 p.m., from Labor Day through to June 1 and beyond 9 p.m. between June 1 and Labor Day.

Lessons learned from the case:
  • The case underscores the imperative nature of complying with child labor laws and the FLSA, reminding employers of the significant penalties associated with non-compliance.
  • Employers should utilize this event as a catalyst to scrutinize employment practices, ensuring adherence to legal stipulations and safeguarding the welfare and rights of young employees.
  • Utilizing resources offered by the Department of Labor, including online videos, confidential consultations at local Wage and Hour Division (WHD) offices, and various tools available on their website, employers can enhance their understanding and compliance with federal law.

Learn more about Alaska Labor Laws through our detailed guide.

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