Fines, Penalties, Back Wages Add Up for Louisiana Seafood Company

July 30, 2012

A Louisiana seafood company is facing nearly $250,000 in fines, penalties and back wages for exposing workers to hazards and underpaying employees.

The U.S. Department of Labor issued findings from investigations of C.J.’s Seafood Inc. in Breaux Bridge.

The department’s Occupational Safety and Health Administration has cited C.J.’s Seafood with 11 serious and one other-than-serious safety violation for exposing workers to blocked exit, fire, electrical and chemical hazards.

The department’s Wage and Hour Division found that the company failed to pay minimum wage and overtime compensation to 73 workers as required by the Fair Labor Standards Act, and to comply with provisions of the H-2B temporary foreign worker visa program established under the Immigration and Nationality Act.

OSHA’s Baton Rouge Area Office conducted an investigation of the company’s facility in Breaux Bridge, where employees peel and boil seafood.

Some of the serious violations cited pertain to the building not being equipped with fire extinguishers, exit signs or emergency eyewash stations. In addition, electrical breakers were not labeled, electrical outlets were not covered, an exit was blocked and temporary wiring was being used instead of permanent wiring. Finally, the employer did not have a written hazard communications program and did not make material safety data sheets available to employees to inform them of hazards in the workplace. These citations carry proposed penalties of $32,200.

A serious violation is one in which there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

The other-than-serious violation involves failing to maintain the OSHA 300 log, in which employee injuries and illnesses must be recorded. This citation carries a monetary penalty of $2,100.

An other-than-serious violation is one that has a direct relationship to job safety and health, but probably would not cause death or serious physical harm.

C.J.’s Seafood has 15 business days from receipt of the citations and proposed penalties to comply, request an informal conference with OSHA or contest the citations and penalties.

C.J.’s Seafood also was found to have violated the FLSA’s minimum wage, overtime compensation and record-keeping requirements by paying “straight time” instead of the required overtime rate for hours beyond 40 in a workweek; making illegal deductions from employees’ wages for items required by their jobs, such as gloves, hairnets and aprons; and failing to maintain records of the hours employees worked, the labor department announced.

According to federal regulators the employer also violated H-2B provisions by misrepresenting its temporary need for foreign workers and failing to pay the required wage rate.

A total of $76,608 is due to the 73 workers, and the company is liable for an additional $70,014 in liquidated damages. The division also has assessed $32,120 in civil money penalties under the FLSA for willful violations of the employer’s obligation to pay overtime and $35,000 in civil money penalties for willful violations of the H-2B program.

C.J.’s Seafood so far has refused to pay the full amount of back wages due, as well as the liquidated damages and civil money penalties, the labor department said. Regulators said the department will pursue all appropriate administrative and legal remedies to the full extent of its authority, including legal proceedings.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records.

The H-2B guest worker program permits employers to temporarily hire non-immigrants to perform non-agricultural labor or services in the United States. The employment must be of a temporary nature, such as a one-time occurrence or for a seasonal or peak load need.

Source: OSHA

Topics Workers' Compensation Louisiana

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