Three North Jersey Giant Farmers Markets owe $1.8 million for overtime violations

Three North Jersey supermarkets owe about $1.8 million in overtime pay to 226 employees, the U.S. Department of Labor announced Thursday. The department recovered $917,455 in back wages and an equal amount in liquidated damages from the Giant Farmers Markets in Hackensack, Oakland and Waldwick.

The Labor Department also assessed $80,428 in civil penalties due to the willful nature of the violations.

“The U.S. Department of Labor’s Wage and Hour Division found the pay practices of D & J Enterprise LLC, J & Y Giant LLC and Waldwick Farmers Market LLC, operating as Giant Farmers Market and operated by John Lee and Diana Lee, violated provisions of the Fair Labor Standards Act,” the department wrote in a release.

The FLSA requires that most U.S. employees receive at least the federal minimum wage for all hours worked. For all hours worked over 40 in one workweek, federal regulations stipulate overtime pay of at least time and one-half the required rate of pay. The federal minimum wage is $7.25 per hour. New Jersey’s minimum wage is $14.13 per hour.

Multiple labor violations

The Department of Labor began its investigation in August 2021. It discovered that since the beginning of its investigation, the three Giants Farmers Markets had violated overtime pay regulations in multiple ways.

Some employees were paid a day rate that did not provide any overtime pay when working more than 40 hours in a week. Others were paid with checks for their first 40 hours and in cash for additional hours. These employees were paid at their regular pay rate in cash and did not receive the required minimum rate of time and one-half on their additional hours.

Breaks of only 20 minutes were deducted from employees’ hours worked. Federal regulations stipulate that breaks must be at least 30 minutes to be deducted from an employee’s pay.

Additionally, Giant Farmers Market “failed to include non-discretionary bonuses into the regular rate of pay, which is necessary when calculating overtime rates,” the statement said.

Denial of pay was consistently found throughout all departments within the supermarket.

Wage theft hurts low-wage workers

A 2020 study by Rutgers University’s Center for Innovation in Worker Organization found that low-wage workers face a higher risk of wage theft during recessions and periods of high unemployment. When businesses refuse to comply with federal regulations, it gives them an unfair advantage over compliant businesses owners. Compliant owners may be struggling to stay in business but don’t resort to wage theft.

“Supermarket and grocery workers are among some of our nation’s lowest-paid, and they depend on every dollar earned to make ends meet,” said Wage and Hour Division District Director Paula Ruffin in Mountainside. “Giant Farmers Market’s attempt to evade federal regulations that protect workers’ rights to be paid all of their earned wages created an unfair advantage over their law-abiding competitors.”

Overtime violations and other forms of wage theft have happened in other North Jersey businesses. Recently, the Department of Labor recovered $301,000 in back wages and liquidated damages from a Fort Lee restaurant and $910,000 from a Lyndhurst staffing agency.

“Overtime violations affect all workers and their families, but they're particularly bad for low-wage workers,” said Linda Helmer, assistant director of the Wage and Hour Division’s Northern New Jersey District Office. “This is why it's important for ... all businesses in all sectors to comply with the Fair Labor Standards Act. Unfortunately, we see this violation throughout all industries in northern New Jersey.”

Workers can anonymously report wage theft

Employees can claim unpaid wages by contacting the Department of Labor’s Wage and Hour Division. Its website includes a search tool that can be used to help employees determine how much they are owed and take further action.

The agency’s new Timesheet App, which is available in English and Spanish, helps workers verify that their wages and hours are accurate.

Employers and workers can confidentially call the division at the toll-free helpline 866-4US-WAGE (487-9243) with questions or to report violations at their workplace. The division can speak to callers in over 200 languages..

Investigations are conducted with supporting and protecting employees as a top priority. The Wage and Hour Division will never tell an employer the reason for an investigation. All complaints are kept confidential, and the name of a worker and the details of a complaint will not be shared with anyone.

“We conduct investigations anonymously,” Helmer said. “So someone doesn't necessarily have to give us their contact information. They give us enough information that we would potentially review and investigate that business or industry."

The Wage and Hour Division takes some proactive measures to ensure compliance. Its outreach coordinators educate employers on the FLSA to prevent violations. The division also selects certain businesses and industries, especially low-wage industries, to be investigated even without receiving complaints.

This article originally appeared on NorthJersey.com: Giant Farmers Markets in North Jersey owe employees for OT