Cellphone retailers sued over wages, overtime

Zam Cricket and World Wireless failed to pay minimum wage, overtime, suit says

The U.S. Department of Labor has filed suit to recover back wages and liquidated damages for 83 workers at Dayton-area cellular phone retailers owned by Zam LLC, Reham LLC and Mohammed Rihan. An investigation by the U.S. Department of Labor’s Wage and Hour Division found violations of the Fair Labor Standards Act’s minimum wage, overtime and record-keeping provisions at the 14 retail stores operating as Zam Cricket and World Wireless.

The investigation determined that the company owes $226,905 in back wages to its workers.

“Through investigations like this one, the Wage and Hour Division continues to combat widespread labor violations,” said George Victory, district director for the Wage and Hour Division in Columbus. “Workers deserve to be fairly compensated for all hours worked, including pre- and post-shift work and mandatory meetings. During tough economic times, workers are vulnerable to exploitation. The Wage and Hour Division is committed to promoting awareness of wage laws and to ensuring compliance, so that all American workers are paid their rightful wages.”

Investigators determined that the company violated minimum wage laws by failing to compensate retail store workers for mandatory meetings, time spent working before the store opened or after closing, and travel time between stores. The company also failed to pay workers at one and one-half times their hourly rate for hours worked over 40 in a workweek and to maintain accurate records of hours worked and of cash payments to employees.

Cricket Wireless provides wireless cell phone plans and prepaid plans with no contracts. The Zam Cricket website claims it is Dayton’s original Cricket dealer, beginning their service in 2001. The company has grown to 14 locations, with stores in Kettering, Huber Heights, Dayton, Greenville and Centerville. The site also claims to be the largest independent cell phone dealer in the area.

The retail stores named in the lawsuit include:

* 4605 Salem Avenue, Dayton, Ohio 45416

* 534 S. Smithville Road, Dayton, Ohio 45403

* 3980 S. Dixie, Moraine, OH 45439

* 100 Rhoades Ave., Greenville, OH 45331

* 5745 Old Troy Pike, Huber Heights, OH 45424

* 7521 Brandt Pike, Huber Heights, OH 45424

* 5001 Brandt Pike, Huber Heights, OH 45424

* 902 S. Patterson Blvd. Dayton, OH 45402

* 1724 N. Main St., Dayton, OH 45405

* 4523 N. Main St., Dayton, OH 45405

* 528 Salem Ave., Dayton, OH 45406

* 3500 Salem Ave., Dayton, OH 45406

* 1744 N. Gettysburg Ave., Dayton, OH 45427

Attempts to reach Mohammed Rihan at two of the stores and his home in Beavercreek were unsuccessful Wednesday.

The lawsuit filed in the United States District Court for the Southern District of Ohio, Western Division, indicates the violations have occurred since May 15, 2011.

In addition to back wages and damages, the suit also seeks a court order permanently enjoining Zam LLC, Reham LLC and Mohammed Rihan from violating the FLSA in the future.

The FLSA requires that covered, nonexempt 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 hourly rates for hours worked beyond 40 per week.

The FLSA provides that employers who violate the law are, as a general rule, liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees. Since 2009 the agency has concluded 145,884 investigations nationwide, resulting in more than a billion dollars in back wages for 1,238,589 workers.

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