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April 21, 2010
Employer to Pay $3.9M to Settle FLSA Lawsuit

Raceway Petroleum has agreed to pay $3.9 million to settle a Department of Labor lawsuit alleging the organization violated the Fair Labor Standards Act (FLSA). The settlement also calls for the company to pay an additional $100,000 in fines.

Over 700 former and current Raceway Petroleum employees, predominantly gas attendants, form the complainant group. Employees alleged that they were subjected to:

  • Working up to 100 hours a week
  • Had two hours of breaks deducted daily
  • Limited to less than one-half hour of break time daily
  • Were not compensated time and one-half overtime pay
The organization was also accused of keeping inaccurate payroll records, another violation of the FLSA.

The New Jersey-based company will also have to keep an “independent monitor” to oversee FLSA compliance and training within the organization.

Under the agreement, Raceway also must install an electronic timekeeping system at every gas station. Every employee must be trained in proper use of the technology, and training must be offered in different languages when necessary for comprehension.

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