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Labor Department fines North Carolina Chick-fil-A for paying workers in food

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The owner of a Chick-fil-A restaurant in North Carolina has been fined four figures for paying employees with chicken vouchers instead of fiat currency.

Good Name 22:1 LLC, a Hendersonville, N.C., business, has been fined $6,450 by the Department of Labor and ordered to pay seven employees $235 in unpaid wages, according to a statement issued Monday. according to a news release.

The agency violated the Fair Labor Standards Act by compensating workers for directing drive-thru traffic with meal vouchers in lieu of proper wages, and forced three workers under the age of 18 to use garbage compactors. I found that I had violated the child labor law by permitting the use of

A person who identified himself as the store manager by phone on Thursday declined to comment to The Washington Post.The restaurant’s management did not immediately respond to the Post’s request for comment on Thursday.

“Protecting our youngest workers remains a top priority for the Wages and Hours Department,” Richard Blaylock, district director of the Wages and Hours Department of North Carolina, wrote in a news release. “Child labor laws ensure that when young people work, the work does not endanger their health, well-being, or educational opportunities. You are responsible for paying, and payments must be made in cash or fiat currency.”

The Hendersonville store ran a voucher program for work over the summer. The Post reported at the time that in a now-deleted Facebook post, the store wrote: Earn 5 free entrees per shift (1 hour). Message me for details. “

Only McDonald’s and Starbucks generated more than $11.3 billion in Chick-fil-A sales in 2019, according to a report from restaurant industry consultancy Technomic.

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Considering that the average Chick-fil-A store outside the mall will generate more than $8.1 million in annual sales in 2021, the fines are relatively small, The Post previously said. It reported, citing a franchise disclosure document obtained by Business magazine.

A Chick-fil-A spokesperson said Thursday that the Hendersonville store is independently owned and operated and is therefore responsible for its own labor practices and policies.

“Chick-fil-A Inc. complies with all federal, state and local laws and expects and requires franchise operators to comply with all laws applicable to restaurants. and was not involved in or endorsed by Chick-fil-A Inc. The restaurant decided to end the program early this summer,” a spokesperson said. author Ashley Cobb wrote in an email.

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According to Chick-fil-A’s website, the chain has 2,600 restaurants open in 47 states, Washington DC, Canada and Puerto Rico. The Atlanta-based company is known for its Bible Belt principles, including not opening stores on Sundays.

Good Name 22:1, the name of the Hendersonville operator, seems to refer to Proverbs 22:1:

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