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Default Judgment of $800K Obtained in DOL Garment Manufacturing Case

December 17, 2010

Our Riverside, California employment attorneys have been following the recent ruling in a U.S. Department of Labor (DOL) case, where the judge favored the former and current workers of a garment manufacturer in Southern California with over $887,000 in back pay and liquidated damages.

According to the DOL, after the Wage and Hour Division investigated Laundry Room Clothing Inc., based in Westminster, California, the company was found to have missed payrolls several times. The department was granted permission by the court in April to follow the payrolls of the business, to ensure prompt payroll payment for the employees. After the court order, the employees were reportedly paid on time, but according to the DOL, employees were not compensated with back wages for missed payrolls from February 2009 to March 2010.

Under the Fair Labor Standards Act, non-exempt employees must be compensated with no less than the federal minimum wage, $7.25 an hour, for any hours worked, plus one and one-half their regular pay rates for any hours worked more than 40 in a workweek. Employers are also required under the FLSA to maintain time cards and payroll records that are accurate.

In the ruling, Judge Matz reportedly approved the DOL's request for a default judgment against the clothing manufacturer, as well as the principal and owner, after they failed to compensate 115 low-wage employees $380,824 in overtime compensation and minimum wage payments. The default judgment also gives the low-wage workers $506,730 in liquidated damages, bringing the total to $887,554.

Hilda Solis stated the importance of holding employers responsible for paying workers their legally entitled payments--especially vulnerable low-wage workers like these, employed throughout Southern California in garment shops. As our Santa Ana employment attorneys reported in a recent blog, wage theft is a problem Solis and the DOL are currently fighting, after a 2009 study performed by researchers at UCLA revealed comprehensive financial discrimination among low-wage workers in the U.S., who were routinely paid less than minimum wage, denied access to workman's compensation, and overtime compensation.

In Orange County, California, contact Howard Law, PC today.

US Department of Labor Obtains Default Judgment in Southern California Garment Manufacturer Case, U.S. Department of Labor Press Release, December 14, 2010

Related Web Resources:

Department of Labor (DOL): Wage and Hour Division (WHD)

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)