Leading Pharmacy Chain Agrees to Pay More than $226,000 in Penalties and More than $38,000 in Back Wages Following Investigation by U.S. Labor Department

Source: U.S. Department of Labor (DOL)

AWoonsocket, R.I. based pharmacy chain has agreed to pay the U.S. Department of Labor civil money penalties totaling $226,598 and to pay 51 employees back wages totaling $38,151 following an investigation by the department that revealed violations of the wage and youth employment provisions of the federal Fair Labor Standards Act (FLSA).

Previous investigations by the department's Wage and Hour Division had disclosed violations at some of the company's retail pharmacies, according to Corlis Sellers, the division's regional administrator for the Northeast. As a result, the division took a more comprehensive look at pharmacy locations throughout the Northeast this year. A total of 63 stores, located in Connecticut, Rhode Island, Massachusetts, New Hampshire, New York, New Jersey, Maryland, Pennsylvania and Virginia, were checked for compliance with the FLSA.

The FLSA requires that covered workers be paid at least the federal minimum wage and one and one-half times their regular rates of pay for all hours worked over 40 in a single workweek. The law also requires employers to maintain adequate and accurate records of employees' wages, hours and other conditions of employment. Finally, the law strictly regulates the employment of young workers.

Among the findings of the investigation: 78 minors were found to have been exposed to the hazards of loading/unloading/operation of cardboard compactors/balers at various pharmacy locations; seven minors were found to have been employed in violation of the law's time standards; and 51 employees were found to be due a total of $38,151 in back wages, mostly because of the improper editing of their timecards by store managers.

Of the 63 sites investigated, 43 stores had FLSA wage and/or youth employment violations. For the youth employment violations, the Wage and Hour Division has assessed the corporation a total of $215,378 and, for the wage violations, a total of $11,220 in civil penalties.

As a result of this investigation, the company has agreed to pay the back wages and penalties, and to make efforts to achieve full compliance with the FLSA at its more than 6,000 stores nationwide.

The Wage and Hour Division concluded 31,987 compliance actions and recovered more than $171 million in back wages for more than 246,000 employees in fiscal year 2006. For more information about the FLSA, call the Department of Labor's toll-free helpline at (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov, and an interactive "e-laws advisor: providing detailed information about FLSA compliance is available at www.dol.gov/elaws/flsa.htm.

For more information on FLSA, or to find out how to protect your company from potential liability, please contact Berkshire Associates Inc. at 800.882.8904 or email bai@berkshireassociates.com.