Berks County battery manufacturer faces record-breaking $22 million verdict for wage violations

East Penn Manufacturing Company Inc., a battery manufacturer based in Berks County, owes $22 million for failing to pay workers properly for time spent changing clothes and showering after their shifts. It’s the largest Fair Labor Standards Act verdict ever obtained by the Department of Labor, according to a spokesperson for the department.

The 7,500 employees impacted by the case must wear protective gear and shower after their shifts to avoid lead exposure and other health risks from working in the manufacturing complex. According to the Department of Labor, East Penn had been paying workers for their eight-hour scheduled shifts, but not for additional time spent showering and changing. That should have been compensated as overtime, the department said.

The 30-day trial included testimony from 39 workers, many of whom testified that East Penn was not giving them enough time during their shifts to shower and change, said Regional Solicitor Oscar Hampton.

“The employees weren’t educated about whether or not they had a right to be paid for putting on their uniform [at the beginning of their shifts] and showering at the end of the day,” Hampton said.

The department started investigating East Penn after a worker complained seven years ago about not getting paid for that time, Hampton added. The suit was filed in federal court in 2018.

“This verdict of more than $22 million is a long-overdue victory for more than 7,500 workers at East Penn Manufacturing,” said Jessica Looman, principal deputy administrator for the department’s Wage and Hour Division. “Federal law requires employers to pay workers for the hours they work, including time these workers needed to protect themselves from dangerous workplace hazards.”

The department will try to recover another $22 million in liquidated damages for the workers to compensate them for the time it took to recover their back pay, Hampton said, and generally to discourage companies from underpaying employees.

East Penn may file an appeal, company spokesperson Donna Snyder said in an emailed statement, also noting that the final judgment amount could change.

“East Penn had made every effort to comply with the laws as it understood them,” Snyder said. “As a company, it stands behind the time paid to employees to put on and take off uniforms and to shower. The company believes it provided proper compensation for these activities and was fair in determining the reasonable time required to perform them.”

Snyder also noted that the jury’s award was less than the amount the department sought before trial. According to court documents, the department had planned to seek nearly $110 million in back wages and an equal amount in liquidated damages.

East Penn was established in 1946 in a one-room creamery, according to the company’s website, and grew into one of the world’s largest battery manufacturers with over 10,500 full-time employees. The battery manufacturing complex in Lyons Station, Berks County, is 520 acres. The company also has a facility in Iowa.