The U.S. Department of Labor has secured a court order mandating KDE Equine LLC, operating as Asmussen Racing Stables, to pay $243,260 in back wages and an equal amount in liquidated damages. This follows an investigation revealing that the company failed to provide overtime wages to 163 grooms and hotwalkers at Churchill Downs and Keeneland racetrack.
This legal action is part of ongoing efforts by the department since 2021 against KDE Equine LLC, founded by Steve Asmussen. The U.S. District Court for the Western District of Kentucky upheld findings that the horse trainer paid employees a salary without appropriate overtime compensation.
"Several U.S. Department of Labor investigations have found significant violations related to the way KDE Equine pays its employees," stated Regional Solicitor Tremelle Howard in Atlanta. "When we determine that an employer has violated the rights of its workers to be paid their full, legally earned wages, the Department of Labor will not hesitate to use litigation."
The division's investigation revealed that non-exempt employees were not compensated for hours worked beyond 40 per week based on their regular rates of pay. Additionally, it was found that KDE failed to maintain accurate pay records and allegedly modified records to conceal Fair Labor Standards Act violations.
“More than 160 grooms and hotwalkers whose work enables Asmussen Racing Stables to be successful will soon have the opportunity to recover the back wages they’re owed,” added Howard.
In August 2023, KDE Equine agreed to reimburse grooms and hotwalkers $129,776 and pay $75,223 in penalties for violating federal H-2B worker program regulations. Previously, in September 2021, $563,800 in back wages and damages were recovered for 170 employees due to similar violations.
KDE Equine operates across Illinois, Kentucky, Louisiana, New York, and Texas with thoroughbreds winning notable races like the Belmont Stakes and Preakness.
“Our investigators found that KDE took actions more consistent with trying to hide its violations rather than complying with federal regulations,” explained Wage and Hour Division Regional Administrator Juan Coria in Atlanta.
The Wage and Hour Division provides confidential compliance assistance regarding federal labor laws through its helpline at 866-4US-WAGE (487-9243) available in over 200 languages.
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