US Department of Labor recovers $124,000 for 40 workers at Hampton Beach shirt factory and imposes $18,000 in penalties

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Hampton Beach LLC Shirt Factory Deliberately Violated Fair Labor Standards Act

MANCHESTER, NH – The U.S. Department of Labor’s Wage and Hour Division recovered $123,750 in back wages and damages for 40 workers at a Hampton Beach clothing retailer after it discovered the employer was paying some employees in cash and paid overtime for over 40 hours. a week of work.

Investigators found that the employer, The Shirt Factory of Hampton Beach LLC – which operates as The Shirt Factory – also failed to pay a worker’s wages for nearly a month.

The division determined that the employer also did not keep accurate payroll and time records for cash-paid employees. Violations of overtime, minimum wage and record-keeping requirements of the Fair Labor Standards Act have affected low-wage retail workers at five Hampton Beach locations.

The Shirt Factory’s investigation into illegal pay practices recovered $59,247 in back overtime pay and $2,628 in back minimum wage, plus equal amounts in damages. The division imposed a civil penalty of $18,510 due to the willful nature of the violations.

“Too often, the US Department of Labor sees overtime violations like these in resort areas. These violations affect hard-working, seasonal and low-wage workers. These workers can least afford the loss,” said Steven McKinney, district manager of the wage and hour division, Manchester, New Hampshire. “As the summer begins, we encourage seasonal business establishments, such as retail clothing vendors, restaurants and hotels to contact the Wage and Hour Division to ensure they understand their obligations under of the Fair Labor Standards Act.”

The Shirt Factory operates as a five-address business in Hampton Beach under two LLCs. The investigation involves the following companies: The Shirt Factory of Hampton Beach LLC; doing business as The Shirt Factory, Impressions Beachwear, Extreme Beachwear; and Mohab’s Decalomania LLC, doing business as Maggie’s Beachwear and Fashion City.

Workers can call the Wage and Hour Division confidentially to ask questions — regardless of their immigration status — and the department can speak with callers in more than 200 languages.

For more information about the FLSA or other laws enforced by the division, contact the agency’s toll-free hotline at 866-4US-WAGE (487-9243). Learn more about the Division of Wages and Hours and a search tool to use if you think you might have back wages collected by the division.

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