Attorney General Kwame Raoul has reached a $250,000 settlement with Direct Food Service Inc. (DFS), a company based in Wood Dale, Illinois. This agreement resolves claims that DFS failed to pay employees overtime wages by compensating them at their standard rate for all hours worked, including those exceeding 40 per week, which contravenes state law.
"Any company doing business in the state of Illinois must follow laws that require employees to be fairly paid for the time they work," stated Raoul. "This settlement sends a message that employers cannot get away with evading Illinois law. I am committed to holding businesses – large and small – accountable for violating laws that safeguard workers and support law-abiding businesses in Illinois."
The investigation by the Attorney General's office found that from December 2019 to December 2023, DFS did not pay the required overtime wage of 150% of an employee’s regular hourly rate for hours beyond 40 per week. Instead, all hours were compensated at the regular rate. Additionally, DFS reportedly concealed these violations by not accurately displaying employees' actual working hours on their paystubs. The Illinois Minimum Wage Law mandates an overtime premium of 150% for each hour over 40 worked in a single workweek.
Once court-approved, Raoul's settlement will enable 52 current and former employees affected by this practice to recover more than 160% of their due wages. Furthermore, DFS is required to implement changes such as maintaining precise time and pay records and providing itemized wage statements reflecting actual hours worked and correct pay rates. The agreement also includes monitoring by the Attorney General’s office to ensure compliance with legal standards moving forward.
Assistant Attorney General Javier Castro managed the case on behalf of Raoul’s Workplace Rights Bureau.
The Workplace Rights Bureau under Attorney General Raoul focuses on protecting employment rights across Illinois, particularly aiding vulnerable residents and immigrant communities. It investigates serious or persistent wage law violations or significant employment practices issues while proposing relevant legislation.
Raoul encourages workers concerned about wage or hour violations to contact his Workplace Rights Hotline at 1-844-740-5076 or submit an online complaint via the office's website available in English or Spanish.