MINNEAPOLIS (KMSP) - Life Time Fitness has agreed to pay more than $976,000 in back minimum wages and damages to more than 15,000 employees in 26 states. A U.S. Department of Labor investigation found the Chanhassen, Minnesota-based health club operator violated federal minimum wage requirements at its clubs in 26 states, including the Fridley, Lakeville and Roseville clubs in Minnesota.
The Labor Department’s Wage and Hour Division found Life Time Fitness took deductions for uniform costs, which resulted in workers making less than the required federal minimum wage per hour, in violation of the Fair Labor Standards Act. While employers are allowed to take deductions for the cost of uniforms, those deductions cannot drop an employee’s earnings below the federal minimum wage, under federal law.
Back wages due to Life Time Fitness employees
Fridley, Minnesota: Back wages of $2,757 due to 87 employees.
Lakeville, Minnesota: Back wages of $7,895 due to 240 employees.
Roseville, Minnesota: Back wages of $1,247 due to 36 employees.
Corporate-wide: Back wages of $476,329 due to 15,546 employees at locations in 26 states.
“This agreement will put thousands of dollars where they belong – in the pockets of hardworking people and their families,” said Karen Chaikin, regional administrator for the Wage and Hour Division in Chicago.
The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week.