ORDERS:
ORDER AND DECISION
This matter comes before the Administrative Law Judge Division on a citation issued by the
Department of Labor, Licensing and Regulations (Department) for an alleged violation of the
payment of wages statute contained in Chapter 10, Title 41. A hearing was conducted on August
31, 1994. Based upon the testimony and evidence presented, I make the following:
FINDINGS OF FACT
1. Gregory Scoville was employed by Headspring Farms, a diary farm located in Newberry, South
Carolina, beginning November 22, 1993.
2. At the time of his employment, he signed a written employment agreement stating he would be
paid $1200 a month for working ten hours a day, six days a week. If he worked in excess of these
hours he would be paid at a rate of $6.00 an hour for each extra hour. The agreement also
provides various options and benefits available to the employee and that deductions would be
made for these selected.
3. Payday is the Saturday on or before the 12th of the month following the month in the labor was
performed.
4. Scoville lived in a house on the farm provided by Headspring, but he paid rent and utilities.
5. In mid-February, 1994, Scoville informed Calhoun Parr, the Assistant Manager, that he would
not be able to continue to work at the farm and would be leaving. Parr reminded him of the two
month's notice requirement and asked if Scoville would stay the full two months. Scoville's reply
was that he intended to leave as soon as other employment was available. Scoville worked until
the end of February and then moved off the farm.
6. On March 18, 1994, Scoville made a complaint to the Department about not receiving his
wages and an investigation was begun.
7. Headspring claimed a set-off against the wages for March rent, utilities, deductions for being
late to work, and deductions for the 60 day notice period. The Department allowed the
deductions for all except the 60 day notice period. Based upon the Department's calculations
Headspring owed Scoville $765.69.
8. The written agreement between Scoville and Headspring states that the agreement may be
terminated by either party on two months written notice unless otherwise mutually agreed to by
the parties. There is no provision for assessing a penalty for failure to provide notice as required.
9. After leaving the farm, Scoville contacted Henry Parr, the owner, because he wanted to pick up
copies of his deductions to determine why he did not get paid. He was told by an assistant to set
up a time to discuss the matter with Parr. Scoville indicated that Parr would have to come to him
to discuss the matter. Parr never contacted Scoville and Scoville did not set up a time to meet
with Parr.
CONCLUSIONS OF LAW
1. The Administrative Law Judge Division is vested with power to hear protested administrative
matters pursuant to S.C. Code Ann. Section 1-23-600(E) (Supp. 1993).
2. Chapter 10, Title 41 is applicable to all employees in South Carolina except employees of
domestic labor in private homes and employers employing less than five (5) employees at all times
during the preceding twelve (12) months. S.C. Code of Laws, 1976, § 41-10-20.
3. Employers must give written notice at the time of hiring of the normal hours and wages agreed
upon. This notice includes the time and place of payment and any deductions from wages. Any
increase in wages are exempt from the notice provisions. S.C. Code of Laws, 1976, §
41-10-30(A).
4. No employer may withhold or divert any portion of an employees pay unless required or
permitted by state or federal law. Employers are required to pay all wages due at the time and
place designated. Section 41-10-40, S.C. Code of Laws, 1976.
5. In case of a dispute over wages, the employer must give written notice to the employee of the
amount of wages which he concedes to be due and pay that amount without condition. Section
41-10-60, S.C. Code of Laws, 1976.
6. The burden was on Headspring to notify Scoville on the March payday the exact amount of the
deductions made to his wages. Headspring failed to do so. Instead it imposed upon Scoville the
requirement to come and settle the account. This is clearly in contravention of the statute.
Headspring is allowed to deduct the rent, utilities and penalty for reporting late to work because
Scoville had been provided notice of these deductions; however, it should not have assessed a
penalty for failing to give the 60 days' notice. It knew that Scoville would leave before the 60 day
period expired and he would not be at work during the entire time period. It was not proper to
assess the posted 5 hour penalty for failing to appear at work during the remainder of the sixty
day period.
7. Headspring's allegations regarding the character of Scoville and his intentions are not a proper
issue in determining whether wages are due and payable pursuant to the statute.
ORDER
Based upon for foregoing Findings of Fact and Conclusions of Law, Headspring Farms failed to
pay wages to Gregg Scoville pursuant to Section 41-10-40 and it is therefore,
ORDERED, that the citation issued by the Department of Labor, Licensing and Regulation is
AFFIRMED. Headspring Farms shall pay the fine of $75.00 within thirty days of the date of this
Order.
AND IT IS SO ORDERED.
__________________________________
ALISON RENEE LEE
Administrative Law Judge
October ____, 1994
Columbia, South Carolina |