Wisconsin Ag Connection - National/World News - Pilgrim's Pride To Pay $1 Million Fine To Settle Labor Dispute

National & World Ag News Headlines

Pilgrim's Pride To Pay $1 Million Fine To Settle Labor Dispute
USAgNet - 02/02/2010

Pilgrim's Pride Corp. reached a settlement with the U.S. Department of Labor to pay about $1 million to settle a review regarding payment to some employees. The U.S. Department of Labor's Web site says the agreement settles allegations that Pilgrim's Pride failed to properly pay overtime back wages as required by the Fair Labor Standards Act, or FLSA.

The law's overtime violations occurred in part because the company failed to pay its employees for all hours worked, including time spent putting on and taking off protective clothing, according to the Web site. Additionally, the U.S. government alleged that required record- keeping wasn't maintained.

Dow Jones News reports that the meatpacker's payment will be distributed as overtime compensation to about 800 current and former employees at the company's Dallas processing facility. The review focused on pay for the minimal time employees spend in putting and taking off protective work clothing such as smocks, aprons and gloves which are required for their jobs at the plant. As part of the settlement, Pilgrim's Pride agreed to modify some time-collection practices, which it said has been the industry standard for decades.

Both Pilgrim's Pride and the federal government also acknowledged the agreement doesn't constitute any admission the company violated any provision of the Fair Labor Standards Act.

It was the second settlement between Pilgrim's Pride and the U.S. government in a month. Late last year, the company agreed to pay $4.5 million to settle an investigation into identity theft and other alleged crimes.