Flowers – which also owns brands Wonder and Tastycake – was this week informed by the department that it has been scheduled for a compliance review under the Fair Labor Standards Act.
The company announced the review in a securities notice, adding it plans to cooperate with the department and, because the review process is confidential, it “has no further comment at this time”.
Shares in Flowers fell almost 11% between opening on Wednesday (August 10) and closing yesterday (August 11) following news of the compliance review and the company's second quarter results.
Flowers has faced legal challenges from truck drivers who claim the company improperly classified them as independent contractors.
This article was amended at 7am EST on August 12 to reflect August 11 share price.