A former Life Time Fitness policy that dictated that uniform costs be subtracted from employees’ first paychecks led to an alleged violation of minimum wage rules, according to the U.S. Department of Labor.
Life Time Fitness’s former policy that specified uniform costs be withdrawn from employees first paychecks has led to numerous allegations of minimum wage violations according to the U.S. Department of Labor.
Life Time Fitness in Chanhassen, Minnesota is required to repay $976,000 in back wages and additional damages to a total of 15,909 employees after continued violations of minimum wage law occurred.
Natalie Bushsaw, the company’s public relations director, confirmed that the former policy for Life Time Fitness dictated that the cost of employees uniforms be deducted from an employees first paycheck when starting employment at the company. This policy resulted in lowering the employees wages to below minimum wage standards for their first pay week. Bushsaw commented that Life Time Fitness currently purchases uniforms for new employees and had ended the former policy over a year ago.
Bushsaw stated that “Life Time Fitness are pleased to reach a resolution that is acceptable to all parties with the Department of Labor.”
Life Time Fitness is also required to provide additional specialised training for all company managers who supervise employees regarding wage and hour and other labor laws to stay complaint with the Fair Labor Standards Act (FLSA).
“The U.S. Department of Labor takes all complaints and concerns very seriously when it comes to the wage rights of workers in the U.S.” Karen Chaiken, regional administrator for Wage and Hour Law commented. “This agreement ensures that the hard-earned dollars of workers will end up where they belong. This comprehensive agreement with Life Time Fitness will enable effective compliance regulations between the company and the FLSA and make sure that all workers take home their rightful wage.”
Life Time Fitness recently ranked third in the club industry’s top 100 Health Clubs just last year. The club industry estimated Life Times revenue stood at a substantial $1.354 billion, which makes ones wonder why it would try to be petty when onboarding new staff.