Fitness Company Throws In Towel, Settles DOL Findings It Overdeducted for Employee Uniforms

As post-election debate ensues about raising the minimum wage, the enforcement of the current minimum wage proceeds on a case-by-case basis.

There will be a little something extra in the paychecks of more than 15,000 employees of Minnesota-based Life Time Fitness Inc. after the company agreed to settle U.S. Department of Labor findings that the company took deductions for employee uniforms that resulted in them earning less than the minimum wage.

15,909 employees nationwide will split  total of $976,765 – $488,229 in back wages and an equal amount in liquidated damages, DOL announced todaytoday.

Here’s the important distinction the case makes: Employers are allowed to take deductions for the cost of uniforms, but those deductions cannot bring an employee’s earnings below the federal minimum wage (currently $7.25 an hour).

Under the settlement, the company also has to pay civil money penalties of $99,825 for violating the Fair Labor Standards Act.

Investigators found violations at the following locations:

  • Fridley, Minnesota: back wages of $2,757 due to 87 employees.
  • Lakeville, Minnesota: back wages of $7,895 due to 240 employees.
  • Roseville, Minnesota: back wages of $1,247 due to 36 employees.
  • Corporate-wide: back wages of $476,329 due to 15,546 employees at locations in 26 states.

Based in Chanhassen, Minnesota, the Healthy Way of Life Company is a privately held, health and lifestyle company. As of October 2016, the company operates 122 centers in 26 states and 35 major markets in the U.S. and Canada under the Life Time Fitness and Life Time Athletic brands.

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