Agriprocessors fined $10 million - KWWL - Eastern Iowa Breaking News, Weather, Closings

Agriprocessors fined $10 million

NEWS RELEASE For Regional Distribution

For Immediate Release

Date: October 29, 2008

Nearly $10 Million Civil Penalty Levied Against Agriprocessors, Inc.

for Wage Violations

DES MOINES - Iowa's Labor Commissioner assessed civil penalties against Agriprocessors,

Inc. for repeated violations of Iowa's wage laws from January 1, 2006 to June 30, 2008.

"Once again, Agriprocessors has demonstrated a complete disregard for Iowa Law," stated

Iowa Labor Commissioner Dave Neil. "This continued course of violations is a black mark on

Iowa's business community."

Agriprocessors, Inc., was assessed a penalty of $339,700 for illegally deducting "sales

tax/miscellaneous" costs 3,397 times. 1,073 employees were affected by the unauthorized

deductions reducing their pay by $72,189.09. A separate civil penalty, of $100 per incidence,

exists for illegally deducting a charge for frocks. This deduction occurred in 96,436 separate

incidences resulting in a $9,643,600 penalty. 2,001 employees had their wages illegally

reduced by $192,597.36. Additionally, Aggriprocessors, Inc. failed to pay 42 employees their

last paychecks on May 16th and May 23rd following the Immigration & Customs Enforcement

raid. Due to the overlapping nature of pay periods, seven individuals were shorted two

paychecks. The company has been assessed a penalty of $4,900 for this violation. In total,

$9,988,200 in civil penalties was assessed and Agriprocessors, Inc. owes $264,786.45 in back


Agriprocessors, Inc. has 30 days to contest the proposed penalties in writing. If a hearing is not

requested within 30 days, all proposed penalties become the final action of the department. An

additional wage investigation is still pending with the company that could potentially lead to

additional civil penalties.


An Equal Opportunity Employer/Program

Auxiliary aids and services are available upon request for individuals with disabilities.

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