Irving TX - The U.S. Department of Labor has announced that HKC Group Inc. will pay 160 present and former cashiers and customer service employees $154,828 in back wages to correct violations of the Fair Labor Standards Act (FLSA). The retail grocery stores, doing business as Komart Market Place, agreed to the payments following an investigation by the U.S. Department of Labor’s Wage and Hour Division.

The investigation covered the two-year period November 1, 2003 to October 29, 2005 and found overtime, minimum wage and recordkeeping violations of the FLSA at the company's three locations in Irving, Dallas and Houston. Although non-exempt employees were paid on a salary basis, their salaries were not sufficient to cover the minimum wage for all hours they worked. Some employees worked as many as 60 hours in a work week without receiving overtime compensation. Additionally, the required payroll records were incomplete.

The FLSA requires employees to be paid the federal minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 per week. Employers must also maintain accurate time and payroll records.

HKC Group cooperated with the investigation and has agreed to future compliance. Back wages will be paid by December 2007.

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Irving, Texas-based Grocery Store Agrees to Pay $154,828 in Back Wages for 160 Workers After U.S. Labor Department Investigation

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