Labor Commissioner's Office Cites Weight Loss Chain Over $8.3 Million for Wage Theft Violations

SANTA ANA, Calif., March 8, 2018 /PRNewswire-USNewswire/ -- The Labor Commissioner's Office has cited Chino-based weight loss and fitness chain the Camp Bootcamp, Inc., doing business as the Camp Transformation Center, more than $8.3 million for multiple wage theft and labor law violations. Unpaid wages and damages are owed to 551 workers who worked in 15 locations throughout Southern California, including trainers, trainer assistants, facility managers and receptionists.

The Labor Commissioner launched an investigation last May after receiving a complaint. The investigation found that from August 2014 to August 2017, trainers and assistants at all locations were only paid for each class taught when they should have been paid per hour. They were shorted on wages due for travel between the class sites, as well as prep and clean up before and after each class.

"Employees must be paid for all hours worked, including travel between worksites," said Labor Commissioner Julie A. Su. "Employers should not expect to pass the cost of doing business to their workers – this is wage theft."

Investigators found that trainers were required to teach classes in different locations, which resulted in driving time of more than an hour between worksites in some cases. The Camp Bootcamp issued separate paychecks to trainers or assistants who worked at multiple locations, with workers receiving up to six paychecks for a single pay period. As a result, the employer did not pay the workers overtime. Managers and other employees were not paid for mandatory staff meetings, and receptionists were not provided required rest or meal breaks.

The Camp Bootcamp was ordered to pay $1,188,536 in unpaid minimum wages, $421,979 for unpaid overtime, $5,882 for unpaid split shift premium pay, $1,388,847 in liquidated damages, $392,106 for meal and rest period violations, $522,166 for waiting time penalties and $190,600 for failure to provide itemized wage statements, totaling $4,110,116 payable to the workers. The citations also include $1,250,200 in civil penalties. The Camp Bootcamp was further ordered to pay the workers $2.95 million in contract wages owed.  The Labor Commissioner has the authority to issue citations for unpaid minimum wages, but contract wages above the minimum are usually sought through a civil action.

When workers are paid less than minimum wage, they are entitled to liquidated damages that equal the amount of underpaid wages plus interest. Waiting time penalties are imposed when the employer willfully fails to pay all wages due to the employee at the time of separation. This penalty is calculated by taking the employee's daily rate of pay and multiplying it by the number of days the employee was not paid, up to a maximum of 30 days. The civil penalties collected will be transferred to the State's General Fund as required by law.

The Division of Labor Standards Enforcement, or the Labor Commissioner's Office, is the division within the Department of Industrial Relations (DIR) with wide-ranging enforcement responsibilities including inspecting workplaces for wage and hour violations, adjudicating wage claims, investigating retaliation complaints and educating the public on labor laws.

In 2014, Labor Commissioner Julie A. Su launched the Wage Theft is a Crime multilingual public awareness campaign. The campaign defines wage theft and informs workers of their rights and the resources available to them to recover unpaid wages or report other labor law violations.

Employees with work-related questions or complaints may contact DIR's Call Center in English or Spanish at 844-LABOR-DIR (844-522-6734).

Members of the press may contact Peter Melton or Jeanne-Mairie Duval at (510) 286-1161, and are encouraged to subscribe to get email alerts on DIR's press releases or other departmental updates.

The California Department of Industrial Relations, established in 1927, protects and improves the health, safety, and economic well-being of over 18 million wage earners, and helps their employers comply with state labor laws. DIR is housed within the Labor & Workforce Development Agency. For general inquiries, contact DIR's Call Center at 844-LABOR-DIR (844-522-6734) for help in locating the appropriate division or program in our department.

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SOURCE Dept. of Industrial Relations