Following an investigation, the U.S. Department of Labor determined that 413 employees were underpaid for work performed before and after their shifts. The determination resulted in payment of $331,000 in back wages to affected employees.
At issue was work performed for set-up of workstations, knife sharpening and post-shift clean-up for which workers were not paid. This constituted a violation of the Fair Labor Standards Act.
Triumph failed to maintain accurate payroll records for the Sioux City, IA. plant and did not pay overtime at the designated hourly rate when workers exceeded 40 hours in any week.
In mitigation, Seaboard Triumph stated that it is corporate policy to pay workers for labor before and after shifts. Following the Department of Labor audit has introduced procedures to prevent a recurrence of deficiencies that were disclosed.