The U.S. Labor Department's Wage and Hour Division announced the settlement on Thursday.
Bergen County-based Daniyal Enterprises and owner Waseem Chaudhary will pay $2 million in overtime back pay and $1 million in damages to 417 workers at 72 of its gas stations in New Jersey. The company also will pay $91,000 in penalties and submit to monitoring for three years.
Labor investigators found gas station attendants often worked more than 80 hours per week without receiving proper overtime pay. Some were allegedly paid in cash to hide the violations.
An attorney for Chaudhary could not immediately be reached.