The San Francisco grocery store chain Casa Guadalupe and its owner have agreed to pay more than $120,000 to settle a wage-and-hour lawsuit filed by the U.S. Department of Labor. The owner admitted to investigators from the Wage and Hour Division (WHD) that he willfully failed to issue time-and-a-half overtime pay to employees who worked more than 40 hours in a week. They received straight-time pay instead.
The chain also failed to maintain proper records of hours worked. Casa Guadalupe operates three stores in San Francisco’s Mission District.
Under the settlement, 25 current and former employees will split $110,071 in back overtime pay. Additionally, the chain will pay $11,687 in civil penalties assessed because the refusal to pay overtime was considered willful. Federal investigators found similar violations during a previous investigation that determined $6,496 in overtime back wages were owed to three workers.
In addition to paying its employees, Casa Guadalupe must train managers on Fair Labor Standards Act () compliance and hire a third-party auditor to oversee FLSA issues for the next three years.
Note: Both federal and state officials are on the lookout for wage-and-hour record-keeping lapses, especially in low-wage industries.