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Wednesday, August 21, 2019

Texas distribution company pays $244,000 in back wages for employees' 'pre-shift' work

Federal Gov

By Marian Johns | Nov 9, 2018

WASHINGTON, D.C. — A Texas distribution company did not pay its hourly employees for "pre-shift" work and failed to keep proper record keeping in violation of the Fair Labor Standards Act (FLSA), the U.S. Department of Labor alleges. 

According to the U.S. Department of Labor's Wage and Hour Division (WHD), Llano Logistics Inc.'s subsidiary United Supermarkets LLC in Lubbock, Texas, did not pay workers who started working prior to their shifts in order to keep up with production standards. Forklift operators and order selector employees had to inspect tools and forklifts among other tasks prior to their shift and before punching in, the WHD said. Llano's actions also led to record keeping violations, according to the WHD.

“Employers must understand the principles of what counts as work time and compensate employees for all the hours they work,” WHD assistant district director Ryan Martin said in a statement.  

“Other employers should use the resolution of this case as an opportunity to review their payroll practices to ensure they’re operating in compliance with the law. The Wage and Hour Division will continue to educate employers and enforce the law so that that employees are paid the wages they have legally earned.”

Llano has paid $244,208 in back wages and in liquidated damages to more than 600 employees, according to the WHD.

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