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ESA News Release: [12/09/2002]
Contact Name: Yvonne Ralsky
Phone Number: (202) 693-4676

U.S. Labor Secretary Elaine L. Chao Announces Toll Free Number for Dollar Tree Store Employees

Company to Pay $582,000 in Back Wages for Overtime

WASHINGTON—Dollar Tree Stores, Inc. of Chesapeake, Va., which operates more than 2000 stores nationwide, is paying $582,000 in back wages and interest to some 3,650 current and former employees following a determination by the U.S. Department of Labor that the company failed to pay overtime to certain workers from May 12, 2000 through May 11, 2002.

“This is great news for these Dollar Tree employees, especially during the holidays,” said Secretary of Labor Elaine L. Chao. “We want to be sure we find every person who is part of this settlement.”

The department’s investigation, conducted by the Wage and Hour Division, determined that Dollar Tree Stores did not include night premium pay and incentive bonuses in computing the overtime pay rate. In addition, merchandise managers and managers in training were not paid overtime.

The company began mailing notices on Sept. 30 to workers covered by the settlement to confirm their addresses and payroll information. Thus far, checks have been mailed to almost 1,800 employees.

Two hundred thirty notices were returned as undeliverable.

Workers who believe they may be among those owed back pay but who have not received a notice from Dollar Tree Stores may call the Wage and Hour Division at its toll-free help line, 1-866-4USWAGE (1-866-487-9243).

Dollar Tree Stores admitted no wrongdoing in agreeing to the settlement. The settlement does not include back wages for employees in California where a private class action lawsuit has been filed.

Employees covered by the federal Fair Labor Standards Act (FLSA) must be paid the minimum wage of $5.15 per hour for all hours worked and time and one-half their rate of pay for hours worked over 40 per week. The law also requires employers to maintain accurate time and payroll records.

Information about the FLSA is also available on the Internet at www.wagehour.dol.gov.

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