US Department of Labor obtains court judgment ordering Phoenix employer to pay $281K after forcing employees to pay kickbacks on wages recovered

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Summary:

A federal court has ordered Sparklean Laundry and its owner, Benjamin Piper, to pay a total of $281,870 in back wages, liquidated damages, and punitive damages to 70 workers in Phoenix. The company was found to have engaged in a kickback scheme after the U.S. Department of Labor recovered overtime wages for the employees in 2020. The employer had initially denied overtime pay to workers who exceeded 40 hours in a workweek and then demanded kickbacks from employees who received back wages. The company was also ordered to pay $100,000 in punitive damages for violating the Fair Labor Standards Act (FLSA).