DOL Requires Company to Pay $2.1 Million to Workers for Unpaid Overtime and Minimum Wage Violations

The DOL recently investigated J&J Snack Foods Corp., a New Jersey based food manufacturer, and determined it failed to pay overtime properly to approximately 465 of its employees. According to the investigation, J&J had paid the employees their regular rate of pay for their overtime hours. Nonetheless, J&J agreed to pay $1.2 Million in back wages and a civil fine. In a separate investigation, the DOL determined J&J had failed to pay proper minimum wages to a different group of employees, and J&J agreed to pay $920,000 in back wages and liquidated damages.

The DOL enforces the federal minimum wage and overtime rules. As a general rule, everyone is entitled to earn overtime at a rate of 1.5 times their regular rate of pay for every hour worked over 40 in a week – this includes if you are paid salary, earn commissions or are paid hourly. There is a very specific list of criteria that exempts certain types of employees from receiving overtime, but these exemptions only apply if all the DOL criteria is met.

If you are an employer who is not paying overtime to employees or an employee who is working overtime and not receiving overtime pay, you should seek the advice of counsel.