CHANHASSEN, Minn. - Minnesota-based Life Time Fitness has agreed to pay select employees nationwide more than $976,000 following a federal investigation involving violations of minimum wage law.
The U.S. Department of Labor announced Tuesday that Life Time Fitness, Inc. will pay 15,909 employees that money -- $488,229 in back wages and an equal amount in damages -- for deducting uniform costs from their paychecks, which dipped their wages below federal minimums. Impacted workers include 87 at Life Time in Fridley; 240 employees at Life Time's Lakeville location: and 36 workers at Life Time Roseville.
“The U.S. Department of Labor takes its responsibility to ensure workers receive the wages they have earned very seriously. This agreement will put thousands of dollars where they belong – in the pockets of hardworking people and their families,” said Karen Chaikin, regional administrator for the Wage and Hour Division in Chicago. “This comprehensive agreement will ensure Life Time Fitness locations nationwide comply with the FLSA and that workers take home their rightfully earned pay.”
In addition to paying back wages Life Time will pay civil penalties of more than $99,000 and conduct additional training for general managers who hire, fire, oversee and manage employees.
Life Time released the following statement late Tuesday afternoon:
"This matter initially arose due to a now former requirement that employees purchase their uniforms upon employment. Life Time not only voluntarily stopped this practice more than a year ago, it now purchases a uniform for employees upon hire. We are pleased to have since reached a resolution with the Department of Labor that was acceptable to all parties."
The Healthy Way of Life Company is a privately held, health and lifestyle company. As of October 2016, the company operates 122 centers in 26 states and 35 major markets in the U.S. and Canada under the Life Time Fitness and Life Time Athletic brands.