The San Francisco Giants have paid nearly $545,000 in back wages and damages to 74 clubhouse and administrative employees for violations of minimum wage, overtime and record-keeping laws, federal officials said Thursday.
Investigators found clubhouse employees were working more hours than were recorded, but receiving only a flat pay rate that amounted to less than the federal minimum wage of $7.25 an hour, the U.S. Department of Labor said.
The Giants were also accused of not paying employees overtime.
"I am encouraged that the Giants acted to resolve this issue, but it was disappointing to learn that clubhouse workers providing services to high-paid sports stars weren't making enough to meet the basic requirements of minimum-wage law," Susana Blanco, the director of the San Francisco office of the Labor Department's Wage and Hour Division, said in a statement.
The alleged violations occurred over a three-year period, according to the Labor Department.
Giants spokeswoman Staci Slaughter said the team changed its clubhouse compensation system before the Labor Department's inquiry. She said labor officials did not account for other sources of clubhouse employees' income, including tips and dues.
"The San Francisco Giants worked cooperatively with the Department of Labor in conducting a comprehensive review of our payroll records to identify and address any possible issues of concern," Slaughter said in a statement. "The matter was resolved and reported on several months ago."
Labor Department officials said the team also improperly classified a number of employees as exempt from overtime pay, including clubhouse managers and video operators at the major and minor league levels. Slaughter said the dollar amount in that case was a small portion of the $545,000.