New York Labor Laws Violations: Fed Ex & Dollar Budget Stores
- Labor law violations are a misdemeanor.
- The Department of Labor enforces New York Labor laws with provisions, Industrial Codes and rules in place to protect all parties involved.
- Labor law violations can result in hefty fines or imprisonment or both.
- Labor law violations can incur civil penalties for each violation of labor law governing the employment of minors less than 18 years of age by an employer.
- Fines include up to $1,000 for 1st violation, $2,000 for second, and $3,000 for the third and subsequent violations.
- Largest penalty for injury or death is triple the max penalty allowed under the law for such a violation.
- The Secretary of Labor under FLSA authorization can assess a civil money penalty of up to $10,000 for each violation of the labor provisions regarding minors.
- An employer can not penalize or discharge an employee because he/she has complained to the Labor Department for alleged violation of any provision of the New York wage and hour provisions.
Case Example No. 1: Cuomo in New York sues Fed Ex
Attorney General, Andrew Cuomo’s office is suing Fed Ex alleging the delivery giant has cheated its delivery drivers out of overtime and other benefits.Filed October 22, 2010, this suit asserts that Fed Ex concocted an “elaborately constructed scheme” to classify its drivers as independent contractors to circumvent the State’s labor law.
In this case, Fed Ex is alleged to have failed to recognize their drivers as employees and, as a result, is in violation of the provisions set forth under New York labor laws.
Case Example No. 2: NYC Dollar Store Chain Pays Back Wages
More than $485,000 in minimum wages, overtime pay, liquidated damages and interest were awarded for more than 120 employees of several New York City’s area dollar stores.
The Department of Labor took legal action against the chain because, in the past, the defendants have professed to operate single establishments even though they were in fact operating a large, multi-establishment retail franchise. Under FLSA FairPay overtime regulations, large operations of this nature are required to pay their workers overtime compensation for hours worked over a 40-hour workweek or over an 8-hour day.
The owner of Dollar Budget, Inc. and Dollar Street, was ordered to pay employees $96,000 and $123.15 in interest for withholding minimum wage payment and overtime compensation. If they fail to pay on time, the court can appoint a receiver with the power to seize and liquidate their assets to satisfy the order.