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December 13, 2007
CVS to Pay More than $250,000 to Settle FLSA Allegations

CVS Pharmacy, Inc. has agreed to pay $226,598 in penalties and $38,151 in back wages after the Department of Labor accused the company of violating the federal Fair Labor Standards Act (FLSA).

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The department says after previous investigations found violations at some of the company's retail pharmacies, the department took a more comprehensive look at CVS locations throughout the Northeast this year. A total of 63 CVS stores, located in Connecticut, Rhode Island, Massachusetts, New Hampshire, New York, New Jersey, Maryland, Pennsylvania, and Virginia, were checked for compliance with the FLSA.

The department says its investigation revealed that 78 minors were exposed to the hazards of loading/unloading/operation of cardboard compactors/balers at various CVS locations; seven minors employed in violation of the law's time standards; and 51 employees were due a total of $38,151 in back wages, mostly because of the improper editing of their timecards by store managers.

Of the 63 sites investigated, 43 stores had FLSA wage and/or youth employment violations, the department says. For the youth employment violations, the Wage and Hour Division has assessed CVS a total of $215,378 and, for the wage violations, a total of $11,220 in fines.

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