Indianapolis grocer pays $92K to workers for failing to pay minimum wage
Three La Canasta grocery stores in the Indianapolis area failed to pay more than $46,000 to meet minimum wage and overtime wage laws, according to the U.S. Department of Labor.
The department recovered more than $92,000 in back wages and damages for 18 workers who were paid a flat weekly rate to stock shelves, serve customers and run the cash register. Indiana has the federal minimum wage of $7.25 an hour.
"The wages recovered for these 18 workers makes a significant difference in their ability to support themselves and their families,” Wage and Hour Division District Director Patricia Lewis in Indianapolis said in a statement. “Historically, small grocers employ young, low-wage and vulnerable workers who may not understand their rights to basic wage protections like overtime and minimum wage.”
Alejandro Hernandez, the owner of the store, said through an interpreter that he received bad advice from his accountant.
The stores have switched to paying hourly plus overtime, he said. Employees will clock in-and-out on a tablet, according to the Department of Labor.
In fiscal year 2021, the Wage and Hour Division's Midwest Initiative recovered some $172,000 in back wages for more than 200 workers in the grocery industry.
The most common problems were violations of overtime, minimum wage and child labor standards.
This article originally appeared on Indianapolis Star: Indy grocer La Canasta pays $92K in recovered wages
