DOL Sues 7-11 Franchise Owners Association Head for FLSA Pay, Record Keeping Violations


A suit filed by the Department of Labor on September 29, 2023 against the operator and owner of four western Michigan 7-Eleven convenience stores warns other businesses against paying workers “off the books” and other failures to comply with the Fair Labor Standards Act “(“FLSA”) pay and recordkeeping requirements.

The Labor Department sued Ali & Companies LLC and its owner, Ali Haider, in the U.S. District Court for the Western District of Michigan after an investigation found two stores in East Lansing, one in Perry and one in Zeeland Michigan operated and owned by Haider paid employees “off the books,” failed to pay required overtime and inaccuracies in the employer’s payroll records. Haider serves as president of the Michigan Franchise Owners Association of 7-Eleven. 

An investigation by the department’s Wage and Hour Division determined the Okemos-based company and its owner did not pay workers overtime at time and one-half their regular rate of pay for hours over 40 in a workweek from at least November 17, 2020 through November 16, 2022. Instead, Ali & Companies and Haider paid some workers off the books. The division also learned the employer failed to maintain accurate records of employee hours worked and pay received.

The lawsuit seeks to recover $36,528 in back wages and damages for 13 workers employed by Ali & Companies LLC.  

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