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November 29, 2007

Ballard's Inn to pay $250,000 in wages, penalties

NEW SHOREHAM -- A popular Block Island restaurant, accused of paying employees below the federal minimum wage and failing to compensate them for overtime, will pay $250,000 in back wages and penalties.

In a written statement, the U.S. Department of Labor says Shoreham Inc., the parent company of Ballard's Inn, and its president must pay 154 employees about $207,000 in back wages.

The restaurant admits no liability under the agreement, but it will pay a $42,000 civil penalty.

Earlier this year, labor officials sued the restaurant for paying workers less than the federal minimum wage and forcing them to work overtime without adequate pay. According to the lawsuit, the restaurant also violated federal child labor laws.

Officials at Ballard's Inn did not immediately return a call seeking comment. They have denied the allegations.

-- The Associated Press

Posted by Mike McKinney  at 3:49 PM | Permalink

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