Gargan must pay $170,000 in back wages and fines

Trainer Danny Gargan and his stable were ordered to pay over $132,000 to 52 employees by a federal court. A Monday release from the U.S. Department of Labor accused Gargan of wage theft and falsified records.

According to the Labor Department and court documents obtained by Horse Racing Nation, Gargan’s stable shorted grooms and hot walkers by not paying overtime, and made false records to show employees as hourly instead of being paid by the horse as they truly were. He must also pay $37,368.96 in fines, bringing his total bill to $170,000.

“The defendants took advantage of their employees by underpaying them and then tried to hide this illegal behavior by falsifying their payroll records,” Wage and Hour Division district director David An said in a release. “Gargan Stables Corp. and Danny Gargan have learned that disregard for federal labor laws and their employees’ rights have costly consequences. We suggest other employers review their own pay practices to prevent violations. The Wage and Hour Division has many tools to assist employers and workers in understanding the law.”

Gargan did not respond to a request for comment from HRN. According to the court's consent judgment, he must pay the back wages and liquidated damages within 60 days.  

He was the latest in a series of trainers who have been caught up in issues with the Labor Department. Others who have been forced to pay back wages in recent years include Steve Asmussen, Chad Brown and Kiaran McLaughlin, who has since stopped training and become a jockey agent.

Beyond the fines, Gargan and his company will have to hire a compliance monitor to oversee payroll.They must also begin to use an electronic timekeeping system and teach employees how to use it, in a language they understand.

“To put it plainly, underpaying employees is wage theft. The U.S. Department of Labor has, and will continue to pursue all necessary legal avenues to obtain proper compensation for employees and deter future violations by employers,” regional solicitor of labor Jeffrey Rogoff said in the Labor Department release. “This settlement – the latest of several with racing industry employers – compensates these underpaid workers and includes enhanced training and timekeeping requirements to change this employer’s behavior and prevent future violations.”

The entire consent judgment can be seen below.