Torbay Council in Devon has been fined £1,000 for not providing the right national minimum wage (NMW) information to HM Revenue and Customs (HMRC).
The council failed to produce the correct records for workers in the parks and leisure departments.
Elizabeth Raikes, the council’s chief executive, said she “deeply regretted” the incident and there had been no loss of income to any individual.
Torquay magistrates also ordered the authority to pay £500 in court costs.
Minister for HMRC Jane Kennedy said: “HMRC’s enforcement teams have an excellent record ensuring workers receive their legal entitlement to at least the minimum wage.
“The majority of UK employers are honest and responsible. Those who refuse to help with enquiries or to comply with the law could face criminal prosecution.”
Torbay Council said the members of staff who should have provided the information had left the council.
Andy Millican, criminal investigation team leader for HMRC, said: “This sentencing sends a clear message to employers, large or small, that HMRC will actively pursue those we suspect of flouting national minimum wage law.”
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The first successful NMW criminal prosecution was the case against Rascals Day Nursery, which was fined £3,000 for preventing compliance officers accessing staff records.
From 1 October, the main NMW rate for workers aged 22 and over was raised to £5.52 an hour.