Chestnut Petroleum Distributors Inc.

New Paltz, NY: (Apr-05-07) The US Department of Labor filed suit against Chestnut Petroleum Distributors, accusing it of violating the federal Fair Labor Standards Act. The suit claimed that 767 workers were paid less than the federal minimum wage. Some of the workers also were not paid for overtime hours between April 2003 and May 2006 at the gas station and convenience store chain. In a settlement reached, the New Paltz-based chain has agreed to pay $900,000 in back wages. Another $100,000 civil penalty will be used as further incentive to properly compensate workers from now on. A probe by the labor department showed the employers failed to keep required records showing hours worked each day, total hours worked weekly, and pay rates for many workers. [WCAX TV NEWS: WORKERS WAGE]

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Published on Apr-9-07