An ice cream parlor franchisee will pay almost $31,000 to 12 employees following a U.S. Department of Labor investigation that found that the Marble Slab Creamery shops violated the Fair Labor Standards Act () by failing to pay overtime.
The investigation revealed the franchise operator paid workers on a semimonthly basis and failed to establish a workweek schedule to help determine when employees worked more than 40 hours in one week. As a result, the employees didn’t receive the proper overtime pay. The investigation also uncovered poor wage-and-hour record-keeping and found that the company didn’t display the required poster describing employees’ rights under the FLSA.
The franchisee agreed to pay the employees to settle a pending lawsuit. The settlement payment covers back overtime pay of $15,498—plus an equal amount for liquidated damages.