Hampton Beach Clothing Companies Stiffed Workers, Fined By Feds

HAMPTON, NH — A Hampton T-shirt and clothing company, operating out of five locations and two limited liability corporations, has been fined by the U.S. Department of Labor after stiffing dozens of employees.

The Shirt Factory of Hampton Beach LLC, doing business as The Shirt Factory, Impressions Beachwear, and Extreme Beachwear, and Mohab’s Decalomania LLC, doing business as Maggie’s Beachwear and Fashion City, were fined $18,510 after investigators found the companies had not paid some employees for overtime and paid other employees cash off the books. One employee, according to officials, was not paid for nearly a month.

The Wage and Hour Division of the department determined The Shirt Factory of Hampton Beach and Mohab’s Decalomania failed to keep accurate payroll and time records for employees who were paid in cash. The violation of overtime, minimum wage, and recordkeeping requirements affected low-wage retail workers at the five stores.

“All too often,” Steven McKinney, the wage and hour division district director in Manchester, said, “the U.S. Department of Labor finds overtime violations like these in resort areas. These violations affect hard-working, seasonal, and low-wage workers. These workers can least afford the loss.”

McKinney said, as summer begins, the department was encouraging seasonal business establishments, such as retail clothing sellers, restaurants, and hotels, to contact the Wage and Hour Division to ensure they understand its obligations under the Fair Labor Standards Act.

The department recovered $123,750 in back wages and liquidated damages for 40 workers. More than $59,000 in overtime was not paid while around $2,600 in wages under the federal minimum wage were not paid.

Previously, employees at one of the stores, Mad Maggie's, were charged with indecent exposure and lewd behavior after being accused of exposing themselves to customers in 2015.

Workers can call the Wage and Hour Division confidentially with questions at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division and a search tool to use if you think you may be owed back wages collected by the division.

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