Blacksburg Childcare Center Ordered to Pay Back Wages - abc27 WHTM

Blacksburg Childcare Center Ordered to Pay Back Wages


Blacksburg, VA - Rainbow Riders Childcare Center, Inc. has paid $69,199 in back wages to 96 employees following an investigation by the U.S. Labor Department's Wage and Hour Division.

Investigators uncovered violations of the minimum wage, overtime, record keeping, and hours worked provisions of the Fair Labor Standards Act. They also found that the employer violated the FLSA by failing to compensate employees for all hours worked, including time worked outside of the classroom to meet with parents and prepare progress books on each child under their care.

Rainbow Riders Childcare, Inc. also failed to pay proper overtime rates for hours worked over 40 in a week and instead, utilized a ‘bank system' where employees were given one hour of time off for every hour of overtime worked, according to investigators.

The childcare center has agreed to comply with all federal labor laws in the future.

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