LANSDOWNE, PA — A Delaware County laundry service was recently ordered to pay more than $527,000 in back pay and liquidated damages after paying its workers a little as $5 per hour.
According to the United States Department of Labor Central Laundry Inc. owner George Rengepes and business operator James Rengepes were recently ordered to pay $527,986 in back wages and liquidated damages in addition to the $478,539 awarded by the court in 2018.
The order comes after the Department of Labor filed an appeal on a previous ruling issued in April 2018 from a 2015 suit that accused the company of violating the Fair Labor Standards Act.
That suit ended with $478,539 awarded to 21 employees, less than what the department had sought.
The department appealed the case, and the U.S. Court of Appeals for the 3rd Circuit reversed the district court's denial of back wages and liquidated damages for 11 long-tenured laundry workers identified in Central Laundry's time records.
On Feb. 25, 2020, following the 3rd Circuit's decision on appeal, the district court awarded these 11 employees full damages. The court also increased its earlier awards for two other employees.
A Wage and Hour's District investigation found, among other violations, that the company workers as little as $5 per hour, well below the $7.25 per hour minimum wage, and only $7.50 per hour for overtime hours in weeks when many workers worked between 50 and 90 hours.
Employers who discover overtime or minimum wage violations can self-report and resolve those violations without litigation through the PAID program.
August 10, 2020 at 11:38PM
https://patch.com/pennsylvania/haverford/delco-laundry-service-ordered-pay-527k-back-wages
Delco Laundry Service Ordered To Pay $527K In Back Wages - Haverford, PA Patch
https://news.google.com/search?q=Laundry&hl=en-US&gl=US&ceid=US:en
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