Hampton Beach Shirt Factory fined for wage violations, ordered to pay $124K for 40 workers
HAMPTON — A Hampton Beach retailer was fined about $18,000 for wage violations, and an additional $123,750 in back wages and damages were recovered and paid to 40 workers.
The U.S. Department of Labor announced Tuesday it fined The Shirt Factory of Hampton Beach LLC for violating the Fair Labor Standards Act. Doing business at multiple locations at Hampton Beach, the employer also “paid some employees cash off the books and paid straight time for overtime,” when workers exceeded 40 hours in a week.
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The businesses’ owner, Mohab Sharabia, said the investigation went on over the winter.
“No comments at this time on the investigation process and report,” Sharabia said. “Due to the high cost of disputing this report, we made a business decision not to continue with litigation.
“We are determined, though, to respect and obey the laws and be in compliance with both federal and state laws. For fairness and equality in applying the law, all other seasonal beach businesses should also be investigated and their reports published.”
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The case was investigated by the U.S. Department of Labor’s Wage and Hour Division out of Manchester, New Hampshire, which covers the three-state territory of northern New England, according to Ted Fitzgerald, spokesman for the Department of Labor. This is the first time the division looked into this employer, he said, with the investigation covering from Dec. 11, 2018, through Dec. 10, 2021. Back wages and damages recovered relate to infractions during the period from May 2019 to October 2021.
“The investigation into The Shirt Factory’s illegal pay practices recovered $59,247 in overtime back wages and $2,628 in minimum wage back wages, plus equal amounts in liquidated damages,” according to the Department of Labor. “The division assessed an $18,510 civil money penalty due to the violations’ willful nature.”
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Fitzgerald said the money recovered in back wages and damages went to workers, but the fine was paid to the department.
The Shirt Factory of Hampton Beach LLC does business at five locations under five names: The Shirt Factory, Impressions Beachwear, Extreme Beachwear, Maggie’s Beachwear and Fashion City. All are located at Hampton Beach.
Fitzgerald said this type of Fair Labor Standards Act violation is not uncommon in seasonal businesses.
“These are the types of overtime violations that the division finds in resort and summer communities, though the circumstances can vary,” Fitzgerald said. “That’s why the division encourages anyone — employer or employee — to contact us if they have questions.”
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According to Steven McKinney, Manchester’s Wage and Hour Division district director, the Department of Labor finds overtime violations in resort areas too often.
“These violations affect hard-working, seasonal and low-wage workers,” McKinney said. “As summer begins, we encourage seasonal business establishments, such as retail clothing sellers, restaurants and hotels to contact the Wage and Hour Division to ensure they understand their obligations under the Fair Labor Standards Act.”
Workers can call the Wage and Hour Division confidentially with questions and the department can speak with callers in more than 200 languages. For more information about the Fair Labor Standards Act or other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243).
This article originally appeared on Portsmouth Herald: Hampton Beach NH Shirt Factory fined for wage violations
