A Melrose Park, Pa., jewelry distributor for several major department stores and the temp agency that provides its workers have agreed to settle allegations that as joint employers they violated the Fair Labor Standards Act.
Stanley Creations contracted with a company called International Labor for temporary warehouse workers to package products bound for stores such as Kohl’s, Macy’s, JCPenney, and Boscov’s.
Investigators from the Department of Labor’s Wage and Hour Division found that neither employer kept accurate time records. Workers received $6 per hour in cash and no overtime. Both practices violate the.
A Stanley Creations spokesperson claims the company did not know International Labor was not paying workers minimum wage and overtime.
Nevertheless, Stanley will pony up the lion’s share of $361,572 due to 163 workers — a sum consisting of $180,786 in back wages and the same amount in damages. Stanley claims it has since severed its relationship with International Labor.
Note: Employers that use temporary agencies may still be held responsible for employee paychecks. Audit time sheets and paystubs.