Chestnut Petroleum Dist., Inc. has agreed to pay $900,000 in back wages to 767 employees and a $100,000 penalty to the federal government to resolve violations of FLSA overtime requirements.
The company is accused of paying employees less than the federal minimum wage and failing to pay the workers proper overtime rates.
The labor department also found that the employers failed to keep required records showing hours worked each day; total hours worked weekly and pay rates for many workers.
The 100-thousand dollar civil penalty "will be used as further incentive to properly compensate workers from now on," U.S. Secretary of Labor Elaine Chao said.
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