The U.S. Department of Labor's Wage and Hour Division is overseeing an enforcement initiative that is concentrating on the gas station industry in New Jersey after it discovered extensive noncompliance problems with the minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act.

The Wage and Hour Division led 74 investigations among gas stations throughout New Jersey during fiscal year 2011 and recovered $1,014,895 in back wages for 295 workers. Of the investigated facilities, 69 were British Petroleum stations. Once the BP stations were notified of the violations, BP Products North America Inc. addressed letters to all of its marketers in New York and New Jersey to remind them of FLSA requires, encouraging them to study their pay practices and deliver legal compliance.

"Employers are legally required to pay their employees for all hours worked," says Secretary of Labor Hilda L. Solis. "The Labor Department's initial findings in this enforcement initiative revealed a culture of noncompliance by gas stations in New Jersey that will not be tolerated. The Wage and Hour Division will continue to monitor this industry for continued compliance."

During the multiyear investigation, the Wage and Hour Division is inspecting payroll records and employment practices and is also conducting employee interviews. The Wage and Hour division is also connecting with employer and employee associations, community organizations, government agencies, unions and other stakeholders in an effort to engage their participation to encourage federal compliance.

According to FLSA, covered employees must be paid at least the federal minimum wage of $7.25 per hour along with one and one-half times their regular rates of pay for each hour after over 40 per week. Hours worked includes each time an employee is on duty, on the employer's property or at any other prescribed place of work. This marks the beginning of the first principal work activity to the end of the last principal activity of the workday. Accurate records of employees' wages, hours and other conditions of employment must also be maintained.

Instant Insights /

DOL recovers more than $1M in back wages for N.J. gas station workers

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