Build-A-Bear Workshop, an international retailer with more than 400 locations worldwide, allows customers to design and create their own teddy bears. The Wage and Hour Division found that many Build-A-Bear’s Midwestern retail locations violated government regulations prohibiting workers under 18 years old from performing hazardous activities and working in potentially dangerous environments.

In one instance, 16- and 17-year old employees routinely loaded and operated industrial trash compactors. Another violation involved underage employees operating and riding in a freight elevator.

Enrique Rodriguez, the Wage and Hour Division’s district director in St. Louis, told Wichita’s KAKE that “Every year, young employees are injured while performing prohibited work.” His office launched regional investigations as part of the child labor mall initiative, aimed at bringing shopping malls into better compliance with FLSA regulations.

“The department’s hazardous orders regulations exist to promote safety and prevent workplace injuries in the nation’s youth workforce,” he told KAKE.

Rodriguez also told KAKE that Build-A-Bear has fully cooperated with the Wage and Hour Division and has taken the proper measures to avoid future violations.

Earlier this year, the same child labor initiative uncovered multiple violations of the FLSA youth employment provisions by retail establishments Miami, Ft. Lauderdale, and West Palm Beach. A random investigation of 19 stores, restaurants, and movie theaters at 3 different malls found 50 minors operating dangerous equipment such as trash compactors and paper balers.

SOURCE: Fair Labor Standards Act › Teddy bear company cited for FLSA child labor violations

According to the Palm Beach Post, the plaintiffs alleged that the club “operated an illegal tip pool knowingly” and with “reckless disregard for the law.” Despite their courtroom victory, however, the plaintiffs failed to persuade the jury of those counts.

An attorney for the poker dealers told the Palm Beach Post that a federal judge will determine how much back pay will be awarded to each dealer, estimating that the total amount would reach $130,000 plus attorney’s fees. Most of the plaintiffs are no longer employed at the Kennel Club.

The ruling will likely boost earnings for card dealers in other Florida clubs where money is commonly skimmed from card dealer tips to pay floor supervisors. According to the plantiffs’ attorney, some dealers could go from making $40,000 to $70,000 with full tips.

The attorney told the Post that the club was “stealing the wages that somebody earned. Period. So their bottom line wouldn’t be affected.”

“They were taking from somebody without them knowing it and giving it to somebody who didn’t deserve it,” he told the Post.

Federal labor regulations allow businesses to pay employees less than minimum wage if the employees “customarily and regularly receive tips.” Attorneys representing the dealers successfully argued that because the club paid dealers $3 below the minimum wage, it shouldn’t have claimed tips to compensate supervisors “who had no direct service contact with the public.”

The Palm Beach Kennel Club is an established dog racing track dating back to 1932. The club also offers simulcast racing, a poker room, and dining options.

SOURCE: Fair Labor Standards Act › Card dealers win labor case against Palm Beach club