Quetico Ordered to Pay $1.3 Million in Wage- and Hour- Law Violations

By Peter Levine posted in Employment Law, Unpaid Overtime on November 4th, 2013

California Labor Regulators Have Ordered Quetico to Pay Overtime, Penalties, and Other Compensation for Wage Violations

California state labor regulators have ordered Quetico, a warehouse and distribution company that receives and distributes shoes, apparel and electronic goods for big-box retailers, to pay $1.3 million in overtime, penalties and other compensation for wage-and hour-law violations.

State Labor Commissioner Julie A. Su’s investigation of two Quetico facilities revealed that the company enforced restrictive procedures that shortened workers of their wages.

Because there were only three available clocks in the facilities totaling half a million square feet in size, employees had to go to work early to stand in long lines to punch time cards.

The commissioner’s office found employees also were denied legally required 30-minute lunch and rest breaks because they had to stand in the same long lines. Allegedly, workers who complained about the punch card situation and the unpaid wages that resulted from the lost time received disciplinary memos and suspensions.

“Wage theft takes many forms,” Su said. “My office will crack down on any employer who is taking hard-earned wages from workers by falsifying time cards and systematically preventing employees from taking a full meal break. We are also intent on eliminating the competitive advantages that labor law violators gain over employers who play by the rules.”

Quetico plans to appeal and disagrees with conclusions reached

Quetico said in a statement that it plans to appeal and that it “strongly disagrees with the conclusions reached” by the labor commissioner. “The notion that Quetico systematically prevented employees from receiving the wages and benefits to which they are entitled under California law is outrageous, misleading and false.”

Warehouse Workers United is a labor union-backed group that has been campaigning to highlight alleged labor abuses at Inland Empire distribution centers used by Walmart Stores Inc., Puma, and Levi Strauss & Co., and other retailers. According to the group Quetico’s warehouses also have been cited by state agencies for safety violations in the last year.

“Many of the problems that we commonly see in Southern California warehouses are concentrated at this warehouse,” said Guadalupe Palma, the group’s director.

Quetico workers first raised concerns last year with an arm of Warehouse Workers United. Subsequently they filed complaints with the labor commissioner’s office.  The office said it has received assurances from Quetico’s management that the company would change its practices on time card, rest break and disciplinary policies.

Peter K. Levine
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