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Pilot Pays $720,000 for Overtime Violations

KNOXVILLE, Tenn. -- Pilot Corp., which operates 61 convenience stores as well as more than 260 travel centers through Pilot Travel Centers, has agreed to pay 110 assistant managers $720,000 in back wages and damages to resolve violations of the overtime provisions of the Fair Labor Standards Act, according to the Knoxville News-Sentinel.

The settlement, which was announced by the U.S. Department of Labor, was approved by U.S. District Judge Thomas A. Varlan and requires the company to pay $43,235 in civil money penalties as well.

The labor department said Pilot had agreed to pay its convenience store employees overtime after an investigation determined the assistant managers did not supervise two or more full-time employees and that supervision wasn't their primary duty.

Pilot, however, failed to follow through with those overtime payments, according to the department's press release.

The assistant managers worked at 52 of Pilot's convenience stores in East Tennessee and Virginia.

In a press release, Secretary of Labor Elaine L. Chao said, "This Administration is a true advocate for America's workers through vigorous enforcement and our new regulations making nearly 7 million more workers eligible for overtime pay."

New "Overtime Security" regulations took effect Aug. 23, 2004, affecting 6.7 million American workers.

The Fair Labor Standards Act requires non-supervisory workers to be paid one-and-one-half times their regular rate of pay for each hour worked in excess of 40 hours per week.

Pilot's companies generate $7.3 billion in annual revenue, and it is the nation's largest travel center operator.

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