Business
CVS to pay $226,598 for labor violations at 43 stores
01:00 AM EST on Tuesday, December 11, 2007
Woonsocket-based CVS Pharmacy Inc. has agreed to pay the U.S. Department of Labor civil penalties totaling $226,598 and to pay 51 employees back wages totaling $38,151 after an investigation by the department that revealed violations of the wage and youth employment provisions of the federal Fair Labor Standards Act.
Previous investigations by the department’s Wage and Hour Division had disclosed violations at some of the company’s retail pharmacies, according to Corlis Sellers, the division’s regional administrator for the Northeast. As a result, the division took a more comprehensive look at CVS locations throughout the Northeast this year. A total of 63 CVS stores, located in Rhode Island, Connecticut, Massachusetts, New Hampshire, New York, New Jersey, Maryland, Pennsylvania and Virginia were checked for compliance with the FLSA.
The law requires that covered workers be paid at least the federal minimum wage and one and one-half times their regular rates of pay for all hours worked over 40 in a single workweek. The law also requires employers to maintain adequate and accurate records of employees’ wages, hours and other conditions of employment. Finally, the law strictly regulates the employment of young workers.
Among the findings of the investigation: 78 minors were found to have been exposed to the hazards of loading and unloading cardboard compactors/balers at various CVS locations; seven minors were found to have been employed in violation of the law’s time standards; and 51 employees were found to be 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. 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 civil penalties.
As a result of this investigation, CVS Pharmacy Inc. has agreed to pay the back wages and penalties, and to make efforts to achieve full compliance with the FLSA at its more than 6,000 stores nationwide.
In a written statement, CVS said, “CVS/pharmacy has entered into a settlement agreement with the U.S. Department of Labor in regard to wage violations and workplace violations involving teenage employees found to be operating certain equipment against established company policy. The employees were found to have loaded, unloaded or operated a paper baler in violation of company policy and without permission to do so. None of the employees were injured during the course of these unapproved activities.
“The settlement agreement includes implementation of manager training during manager orientation; training of minors in regard to these work limitations and provision of information to parents of minors upon hire; and posting stickers, restricting keys and prohibiting minors from entering areas that have restricted equipment over which CVS/pharmacy does not have control.
“Although CVS/pharmacy disputes the findings of the investigations concerning payment of wages, the decision was made to pay 51 employees back wages that in most instances ranged from $39 to $300. CVS/pharmacy has a policy of paying for all time worked, including payment in accordance with federal requirements for time worked over 40 hours in a single workweek and takes timely action to correct any errors. The company also provides a mechanism for employees to timely report any payroll concerns or questions.”
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