Popular Lexington shaved ice truck sued over unpaid wages, overtime in federal court
A popular Lexington shaved ice truck may have cut its staff short on wages, overtime pay and failed to comply with federal and state labor laws, according to a class action lawsuit filed last week in the U.S. District Court for the Eastern District of Kentucky.
Angelina Harrison and other staff at Kona Ice of the Bluegrass and Kona Ice of the Ville are suing Thomas Scott and Lisa Dawn Lamb over wage theft, equal pay and fraudulent payroll practices.
The lawsuit filed by Harrison and employees like her claims non-exempt staff were required to work extensive hours without the wages, overtime pay, breaks and access to required notices outlined in federal and Kentucky labor laws.
It also claims female employees were singled out and subject to unequal pay for longer hours in worse conditions.
The Lambs, the lawsuit said, engaged in the behavior knowingly and in an effort to maximize event revenue and staffing efficiency.
In a statement to the Herald-Leader, James M. Morris, from the Lexington-based firm Morris & Morris which is representing Harrison, said Kentucky workers are entitled to be paid for every hour they work.
“The lawsuit alleges a deliberate pattern of conduct designed to deprive employees of wages and overtime compensation they had already earned,” Morris said. “If the allegations are proven, this case involves far more than payroll mistakes. It involves intentional decisions that shifted the financial burden of doing business onto hourly workers, many of whom make little more than minimum wage.”
Thomas Scott Lamb was not immediately available for comment Friday afternoon.
Harrison and employees like her are seeking repayment of their lost wages and for Kona Ice to follow the Kentucky Wage and Hour Act in good faith. The law governs minimum wage, tipped employee compensation, breaks and time off. It also outlines exemptions.
Kona Ice, which is owned by Seasonal Food Concepts Inc., is a food truck and event business that sells and serves shaved ice and other frozen desserts at schools, workplaces, daycares, summer programs, sporting events, festivals and a number of other public and private events.
Its non-exempt staff, according to the lawsuit, routinely work more than 40 hours per week handling goods and materials in addition to working in driving, preparation, cashiering, cleaning, loading, restocking, scheduling and event-staffing roles.
The lawsuit said Kona instructed, expected and permitted its employees to work before and after recording paid time, including to prepare trucks, load supplies, travel to and from events and complete other related tasks for the company’s benefit. The lawsuit also said the company did not follow Kentucky law in allowing its staff to take meal or rest breaks and instead required them to remain on duty at events.
The Lambs, who have operational control over Kona, “knowingly designed, approved, and maintained pay practices” that bends federal and state rules.
“Defendants’ conduct was intentional, willful, fraudulent, in reckless disregard of clearly applicable law, and not in good faith,” the lawsuit said. “Defendants benefited from the unlawful practices by retaining wages owed to employees, reducing payroll expenses, shifting the cost of illegal practices to low-wage workers, and concealing the true amount of compensation due.”
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