Snack Food Maker Hit With $2M Award for Minimum Wage and Overtime Violations

It’s the latest sign that the federal government is cracking down on employers and their staffing agencies for not complying with the minimum wage and overtime provisions of the Fair Labor Standards Act.

More than 600 temporary line workers at J&J Snack Foods Corp. will share more than $2.1 million in back wages and liquidated damages for the company’s minimum wage and overtime violations, the U.S. Department of Labor announced on October 27.

J&J’s products include baked goods under the Country Home Bakers, Mary B’s and SuperPretzel brand names, and frozen food products under the ICEE, Luigi’s, Slush Puppie, Minute Maid Juice Bars and WholeFruit labels. Its products are sold nationwide at stadiums and arenas; department, chain and convenience stores; discount and warehouse clubs; theme parks; movie theatres; schools and colleges; and retail supermarkets.

The department’s most recent investigation found 465 workers at J&J’s Swedesboro facility provided by staffing firm Sebastian and Sebastian LLC were paid straight time for overtime hours worked beyond 40 in a workweek, in violation of federal law. In response, J&J agreed to pay a total of $1,260,254 in back wages and liquidated damages to these workers.

Two hundred and twelve temporary workers  at the J&J facility in Chambersburg, Pennsylvania, will receive $920,000 in back wages and liquidated damages to make them whole for not being denied the federal minimum wage and overtime.

J&J and the staffing agencies were joint employers because “the economic realities show that [the workers] are economically dependent on — and thus employed by — another entity involved in the work,” the DOL said

More details on the case are available here.

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