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Uniform Deduction Policy violation at Life Time Fitness costs $976k

MINNEAPOLIS – Life Time Fitness, a Minnesota-based company, has agreed to pay 15,909 employees nationwide a total of $976,765 – $488,229 in back wages and an equal amount in liquidated damages – after a federal investigation found the employer violated federal minimum wage requirements at its health clubs and fitness center locations in 26 states. The Company operates over 120 locations in 26 states.

An investigation by the U.S. Department of Labor’s Wage and Hour Division found Life Time Fitness Inc., a subsidiary of the Healthy Way of Life Company, took deductions for uniform costs, which resulted in workers making less than the required federal minimum wage per hour, in violation of the Fair Labor Standards Act. A former company policy (discontinued more than one year ago) required that all uniform costs be deducted on the employee’s first payroll check, which ended up reducing the employee’s wages below the minimum wage. The Company ended this policy and now purchases uniforms for new employees upon their hiring. Alternatively, the Company could have spread the cost of uniform costs over several weeks to ensure that all employees received at least minimum wage for all hours worked.

In addition to paying the back wages due, the company will:

Pay civil money penalties of $99,825 for violating the FLSA.
Conduct formal training on FLSA requirements with general managers who hire, oversee, manage and develop employment and pay practices at its locations nationwide.

An employer is allowed to take deductions for the cost of uniforms, but those deductions cannot bring an employee’s earnings below the federal minimum wage. Read the press release.

We review our clients uniform and dress code policies for compliance, as well as provide uniform agreements and deduction authorization forms.

Consultstu LLC provides fractional HR services to small/mid businesses to lower operational costs, improve business processes and comply with workplace regulations. We deliver customized HR solutions that provide protection from expensive mistakes and strategies to improve workplace results. Call us at 727-350-0370 or visit http://www.consultstu.com

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