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Employment Law Alert: Gas Station & Convenience Store Owner Agrees To Pay $1 Million To Settle Wage & Hour Lawsuit

The U.S. Department of Labor announced on Monday that it had reached a settlement with Chestnut Petroleum Distributors, Inc., to settle a wage and hour lawsuit brought under the federal Fair Labor Standards Act for $1 million dollars. The lawsuit alleged that, between April 2003 and May 2006, Chestnut failed to pay the required minimum wage and overtime to some 767 current and former employees at gas stations and convenience stores located in New York, New Jersey and Connecticut. Chestnut was also charged with record-keeping violations. Approximately $900,000 of the settlement will go to the workers, and the remainder will be paid to the DOL as a penalty.

Bottom Line

This case is yet another example of the increasing popularity of wage and hour claims, as well as a reminder of just how costly they can be to employers.

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