"Hot Goods" Provision

In June, a cherry processing plant in Williamsburg, MI closed its doors. Cherry Blossom LLC did not pay their employees for all of their hours before the plant closure. The cherries that were produced during that time period were sold to a company in Indianapolis for delivery to customers throughout the country.

The U.S. Department of Labor (DOL) oversees the Fair Labor Standards Act (FLSA) which sets wage and hour laws. They were notified when the employees didn’t receive their final paychecks from Cherry Blossom LLC. If employees are not paid in compliance with the FLSA, employers cannot deliver, sell, or ship in interstate commerce the goods that were produced by those employees. This provision in the FLSA is called the “hot goods” provision.

“We informed the buyer that it is illegal to sell goods worked on by employees who were not paid in compliance with federal wage laws,” said James Smith, district director of DOL’s Wage and Hour Division in Detroit, Mich. “Due to the investigation, the buyer agreed to pay $38,700 in back wages owed to workers at the plant.”

If you know of anyone that worked for Cherry Blossom LLC at the time they closed their doors, the DOL has their pay. Contact the Wage and Hour Division at 313-226-7448.

Employers should make it their business to understand FLSA rules and regulations.