Life Time Fitness, Chanhassen, Minnesota, will pay $976,000 in back wages and damages to 15,909 of its employees after allegedly violating minimum wage laws, the United States Department of Labor announced Tuesday.
A former Life Time policy had dictated that uniform costs were subtracted from employees’ first paychecks, said Natalie Bushsaw, the company's public relations director. This, in turn, lowered select employees’ gross wages below minimum wage requirements for their first pay period, the Department of Labor alleged. Bushaw said Life Time ended this policy more than a year ago and now purchases uniforms for new employees upon their hiring.
“We are pleased to have since reached a resolution with the Department of Labor that was acceptable to all parties,” she said in a statement provided to Club Industry.
Life Time is now required to administer special training for all managers who supervise company employees, according to a report by KARE 11.
“The U.S. Department of Labor takes its responsibility to ensure workers receive the wages they have earned very seriously,” said Karen Chaikin, regional administrator for the Wage and Hour Division in Chicago, according to KARE 11. “This agreement will put thousands of dollars where they belong – in the pockets of hardworking people and their families. This comprehensive agreement will ensure Life Time Fitness locations nationwide comply with the FLSA and that workers take home their rightfully earned pay.”
Life Time Fitness ranked No. 3 on Club Industry’s Top 100 Health Clubs if 2016, just behind 24 Hour Fitness and LA Fitness. Club Industry estimated Life Time's 2015 revenue at $1.354 billion.