Two Guam bakeries – New Fresh Bread Bakeshop in Dededo and Café Panadero in Yigo – were ordered to pay $108,929 in back wages and liquidated damages to 20 employees for violations of the Fair Labor Standards Act’s overtime requirements, according to the U.S. Department of Labor.
The U.S. Department of Labor's Wage and Hour Division has also assessed $7,535 in civil penalties against the employer.
Investigators found the bakeries and their owner, Zenaida Milano, failed to pay employees overtime at time-and-one-half their regular rates of pay when they worked beyond 40 hours in a workweek, as the law requires. Instead, Milano continued to pay employees their straight time rates for the overtime hours.
According to the Labor Department, the employer acknowledged not paying overtime and told investigators that employees agreed with the arrangement in order to secure more hours of work.
“Federal law prohibits an employer from entering into any agreement with employees to waive their right to overtime pay,” said Wage and Hour District Director Terence Trotter in Honolulu, Hawaii. “Simply because an employee may agree to a particular arrangement does not make it legal. Our work to enforce these requirements ensures workers receive all the wages they have legally earned, and levels the playing field for employers.”