AVI agrees to pay `back wages'

Tribune Chronicle
WARREN — Some 42 workers at AVI Foodsystems Inc. will divide $88,418 in back wages that the company agreed to pay to resolve allegations of overtime pay violations, the U.S. Department of Labor said Wednesday.

The food and beverage company on Elm Road N.E. agreed to the judgment but didn’t admit violations of the Fair Labor Standards Act, which governs federal minimum wage and overtime pay law, the labor department said.

The judgment resolves a complaint filed by the department claiming the company failed to pay workers 1 1/2 times their regular pay rates for more hours worked over 40 hours in a work week. The complaint also claimed that AVI failed to maintain adequate records of employees’ wages and hours worked.

AVI also didn’t incur any fines or penalties, the company said, adding it helped the labor department conduct the audit. The company said it has agreed not only to reclassify the workers but also provide compensation that would have been paid based on the new classification.

The company noted it recognizes the ‘‘value of its employees in meeting the needs of our customers and is committed to ensuring they are fairly and competitively compensated.’’

The labor department audit ‘‘has helped us make certain all of our employees are properly classified,’’ Director of Human Resources Sandy Gray said. ‘‘Our employees are AVI’s most valuable resource.’’

The labor department said it recovered a record $220 million in back wages for more than 341,000 workers in fiscal year 2007 in 30,467 cases. Back-wage collections rose 67 percent over 2001, the department said. The number of workers getting back wages has increased 58 percent since 2001.