Ice manufacturers pay over $1M for deliberately denying workers’ earned overtime

Ice manufacturers pay over $1M for deliberately denying workers’ earned overtime

Jan. 15, 2025
According to the agency, the companies’ common ownership deliberately withheld $527,687 in overtime earned by 70 workers.

The U.S. Department of Labor’s (DOL) Wage and Hour Division has recovered more than $1 million in back wages and damages from two California ice manufacturers, San Diego Ice Company in San Diego and California Ice Company in Lake Elsinore. According to the agency, the companies’ common ownership deliberately withheld $527,687 in overtime earned by 70 workers. Many employes worked 16 hours of overtime each week but were only paid regular hourly rates. The companies ignored the federal requirement to track and pay time-and-a-half their workers’ regular hourly rate for hours over 40 in a workweek. 

The money collected by the DOL, which includes $527,687 in unpaid overtime and $527,687 in liquidated damages, will be made available to affected employees in a 12-month installment plan. Additionally, the companies will have to pay $36,358 in civil money penalties because of the willful nature of their Fair Labor Standards Act violations.

What people are saying

In a recent quote, Wage and Hour Division Assistant District Director Jose Medina said, “The owners of the San Diego Ice Company and California Ice Company willfully violated the rights of 70 hard-working people who work around the clock to help these companies be successful. The U.S. Department of Labor will not tolerate such callous and illegal mistreatment of employees who are simply trying to provide for themselves and their families. We will use all available enforcement tools to hold employers accountable for compliance.” 

DOL in the news

Sawmill pays $84K for hiring and endangering children at Tennessee facility  
The plant’s labor practices violated the child labor provisions of the Fair Labor Standards Act (FLA), as well as the FLA’s minimum age standard. 

Ball Container pays $309K to resolve race-based hiring discrimination 
Ball Container discriminated against 192 Black applicants for production technician positions at the Rome, Georgia, facility.

Plastics manufacturer pays $154K for willful wage violations 
The plastics manufacturer had failed to include bonus payments when calculating overtime for 743 workers.

Learn more about labor issues in manufacturing

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Does US Manufacturing Have a Child Labor Problem?
Incidents of child labor violations in the U.S. have risen since the pandemic.

How Well Do You Know US Labor History?
September honors working people, so it's high time to test your knowledge about sit-down strikes, union membership and labor law.

About the Author

Alexis Gajewski | Senior Content Strategist

Alexis Gajewski has over 15 years of experience in the maintenance, reliability, operations, and manufacturing space. She joined Plant Services in 2008 and works to bring readers the news, insight, and information they need to make the right decisions for their plants. Alexis also authors “The Lighter Side of Manufacturing,” a blog that highlights the fun and innovative advances in the industrial sector. 

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