Texas Company Forced to Pay Several Million to Disabled Workers
A Texas company that underpaid mentally disabled workers for decades recently received several million-dollar judgments against them for violating the Americans With Disabilities Act.
December 13, 2012
A Texas company that underpaid mentally disabled workers for decades recently received several million-dollar judgments against them for violating the Americans With Disabilities Act of 1990, the Fair Labor Standards Act and several state labor laws for its treatment of its disabled employees.Hill Country Farms, d.b.a. Henry's Turkey Service, illegally paid disabled workers a total of 41 cents per hour to eviscerate turkeys at an Iowa plant. The workers' rate of pay did not change in 30 years. Some of the workers had been working at the plant since the 1970s. The company has had three judgments against them of more than $1 million since 2009. A dilapidated bunker where some of the workers lived was also shut down in 2009 because of unsafe living conditions.
No criminal charges were filed, as prosecutors determined the multi-million dollar lawsuits brought by state and federal agencies were punishment and deterrent enough.
Several Lawsuits, Federal Investigation
The federal government first investigated Henry's Turkey Service in both 1997 and 2003. The Department of Labor found the Texas firm had failed to pay overtime to its employees both times. Under the Fair Labor Standards Act, employers must pay a federal minimum wage of $7.25 per hour as well time-and-a-half pay for overtime, defined as any hours over 40 per week. Under the law employers are also required to keep accurate timesheets of employees' work.
In both investigations, the Department of Labor directed Henry's Turkey Service to pay the workers their OT back pay, which they did, and the company promised to obey federal law in the future, which it did not.
Americans With Disabilities Act of 1990
In addition to paying the disabled workers' wages (however small), the company also provided care, room and board, and was designated to receive the workers' Social Security benefits. Rather than take the SSD payments to pay for care, however, Henry's Turkey Service also deducted $1,000 per month from employees' paychecks for providing room and board and pocketed the extra money from the workers' SSD payments.
U.S. District Judge Charles Wolle found that the company illegally deducted those expenses and awarded the workers $1.37 million in back pay. Judge Wolle wrote that the number represented how much more the workers should have been paid between 2007 and 2009. While the company had been engaged in the practice much longer than three years, under federal law the workers could not recover past two years previous to the lawsuit being filed.
The company was also forced to pay over $1 million to its workers for violating state labor laws.
Discrimination and Illegal Wages
Despite recent gains, employers continue to practice discrimination against protected groups and violate federal wage laws. Employees who suspect they have been the victim of discrimination or have not been paid what they are due under the law should contact an experienced wage and hour violation attorney to discuss their situation.
Article provided by Kennard Law P.C.
Visit us at http://www.kennardlawsanantonio.com