Goodwill Industries settles allegations of altering employee time records to avoid paying overtime

By Marian Johns | Dec 14, 2018

SAVANNAH, Ga. — Georgia-based Goodwill Industries of the Coastal Empire Inc., will pay more than $100,000 in back wages to settle claims by the U.S. Department of Labor (DOL) that the thrift store chain manipulated employee time records.

According to a DOL's Wage and Hour Division (WHD), an investigation found Goodwill managers changed janitorial government contract employee's time records in an effort to shorten employee hours, deducted some break periods to avoid paying required overtime and did not pay disabled employees for the full time they worked. The Labor Department alleges that through its actions, Goodwill violated the McNamara-O'Hara Service Contract Act (SCA), Contract Work Hours and Safety Standards Act (CWHSSA) as well as the Fair Labor Standard Act (FLSA). 

“Employers are responsible for paying their employees all the wages they have legally earned,” said Eric Williams, WHD district director in Atlanta. “The Department’s Wage and Hour Division offers a wide variety of tools to help employers understand their responsibilities and avoid violations.”

The Labor Department said 165 employees in Georgia were affected by Goodwill's actions, including workers at Fort Stewart's U.S. Army Mission Installation Contracting Command, the Federal Law Enforcement Training Center, Juliette Gordon Low Complex, Tomochichi Federal Courthouse and the U.S. Customs House. 

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