Wednesday, July 31, 2013

Growers Bananera Fabre and Finca La Plata to pay $275,000 in back wages and damages to 174 workers following US Labor Department lawsuit

The U.S. Department of Labor has secured a consent judgment ordering Sabana Grande-based agricultural employers Jose V. Fabre Laboy, doing business as Bananera Fabre, and his son, Jose V. Fabre Santiago, doing business as Finca La Plata, to pay a total of $275,000 in back wages and liquidated damages to 174 agricultural workers. A Wage and Hour Division investigation revealed that the defendants attempted to divide the farm to avoid Fair Labor Standards Act coverage. Under the law, the two businesses were found to constitute a single enterprise.

The lawsuit, filed in the U.S. District Court for the District of Puerto Rico in September 2012 after an investigation by the division, found that the defendants willfully and repeatedly violated the minimum wage provisions of the FLSA. The defendants paid workers only $6.25 to $6.50 per hour instead of the legally required minimum of $7.25 per hour.
 
“As demonstrated by this consent judgment, the department will use all the enforcement tools at its disposal against employers who deprive workers of their hard-earned wages,” said Jose R. Vazquez, director of the division’s Caribbean District Office. “These back wages can be life changing for these workers, who have worked long hours in the fields without earning the minimum wage to which they are entitled.”

Under the judgment, the employers’ fruit and vegetable wholesalers are required to comply with the FLSA’s minimum wage and record-keeping requirements; post information on the FLSA and Migrant and Seasonal Workers Protection Act for the employees; and inform workers of their rights and the terms of the judgment. It also prohibits the defendants from firing or retaliating against employees who disclose FLSA violations, provide information during an investigation or refuse to participate in any FLSA violations.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour, as well as time and one-half their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law.

The investigation was conducted by the division’s Caribbean District Office in Guaynabo. The department’s Regional Office of the Solicitor in New York litigated the case for the division.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.