HEMET, Cali. — The former owner and general manager of El Toro Market in Hemet, California, was recently convicted of obstructing the U.S. Department of Labor’s (DOL) investigation into alleged overtime pay violations. The former owner’s brother pleaded guilty earlier this year to the same offense. On top of the convictions, El Toro Market was found to have violated the Fair Labor Standards Act (FLSA) when it failed to pay its employees for all of the hours they worked.
The Overtime Investigation
Overtime investigations begin after an employee or interested third person files a complaint with either the state or federal department of labor. The DOL’s Wage and Hour Division investigated El Toro and in March 2008 found that El Toro failed to pay more than a dozen employees the overtime wages they were entitled. The findings determined that El Toro owed around $48,000 to 13 current and former employees.
The company agreed to pay the back wages owed, but was later found to have provided false documents to the DOL and to have lied to seven of its employees to avoid paying the owed wages. The owners convinced the employees to sign checks in the amounts they were owed, but never allowed the employees to take the checks. They then coerced the employees to sign documents claiming they received their back wages, when they had not.
Obstructing Overtime Investigations
The FLSA, along with the majority of labor laws, has a provision which prohibits an employer from retaliating against employees who file a complaint or assist in an investigation or litigation of a complaint under the law. The purpose of this provision is to encourage employees to raise issues and help in the investigations intended to correct the issues. It is also intended to deter employers from attempting to obstruct or even prevent investigations.
In this case, the former owner and his brother were found to have paid $2,000 to two witnesses for them to sign false declarations and to not cooperate with the investigation. They were also found to have coerced their employees to lie about receiving their back wages. The former owner also was found to have threatened another employee with termination if he did not participate in obstruction. The former owners could face up to 135 years in prison, though they will likely only be sentenced to 5 to 7 years.
If you work more than 40 hours a week and you are a nonexempt employee, you are likely entitled to overtime wages. If you employer denies those wages or denies you the back wages you have been awarded, call our top-rated team of overtime pay lawyers today at (855) 754-2795. Or our experienced legal team can evaluate your situation and discuss your options when you complete the Free Unpaid Overtime Case Review form. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.