Chesco Company Fined $407K For Overtime, Child Labor Violations

A Chester County manufacturing company must pay more than $400,000 in fines and back wages for violations of overtime and child labor law, according to the U.S. Department of Labor (DOL).

Stoltzfus Structures, based in Atglen, must pay about $188,572 in back wages, and the same amount in liquidated damages, to 47 employees, officials said. DOL's Wage and Hour Division determined that the company failed to pay those employees when they worked more than 40 hours per week, authorities said.

Stoltzfus also failed to keep a record of how many hours employees worked, according to officials. Stoltzfus alleged that they did not believe they had to pay employees overtime because some of the employees owned a small portion of the business. However, that does not exempt them from the Fair Labor Standards Act, the DOL determined.

In addition, Stoltzfus must pay a $30,800 fine for violating child labor law.

“We urge employers to avail themselves of the resources we provide to show them how to comply with federal pay and child labor laws,” DOL Wage and Hour District Director James Cain said in a statement. “Employment opportunities for minors must never come at the expense of their safety.”

In one case, the company illegally allowed a 16-year-old employee to use a table saw with a circular blade, leading to a serious injury, officials said. In another case, two 16-year-old employees illegally used a pneumatic-powered staple gun and battery-operated drill. In a third case, three 15-year-olds were allowed to operate power-driven woodworking machines, officials said.

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