Wage and Hour Division (WHD)

Printer-Friendly Version

Press Releases

FORT WORTH, Texas -- The Leather Factory Inc., Fort Worth, has paid $222,988 in back overtime wages after a U.S. Department of Labor investigation found that 59 non-exempt former and current store managers had not been properly paid.

The investigation, conducted by the department’s Wage and Hour Division, covered the two-year period from Nov. 4, 2002 to Nov. 4, 2004. Investigators determined that The Leather Factory had violated the overtime provisions of the Fair Labor Standards Act (FLSA) by not properly paying employee’s overtime wages equal to one and one-half times their regular rate of pay for hours worked over 40 in a workweek. Additionally, the company failed to keep the required payroll records.

“Under the FLSA, supervisors who do not supervise two or more employees are entitled to overtime compensation. This company classified many supervisors as exempt from overtime pay who did not have the equivalent of two fulltime employees working under them,” said Cynthia Watson regional administrator for wage and hour in Dallas. “We are pleased that nearly $223,000 in back wages has been recovered for 59 workers around the country.”

The Leather Factory, doing business as Tandy Leather Factory, employs about 330 workers nationwide. The company, a manufacturer, distributor and retailer of leather goods that also provides mail order services, cooperated in the investigation and has agreed to future compliance with the FLSA. Back wages have been paid in full.

The FLSA requires that covered employees be paid the minimum wage for all hours worked, plus time and one-half their regular rate of pay for hours worked over 40 per week. The FLSA also requires employers to maintain accurate time and payroll records and has restrictions on employment for minors under 18 years of age.

For more information about the FLSA, call the Wage and Hour Dallas district office at (817) 861-2150; metro number at (817) 261-4371, or the Department of Labor’s toll-free line at 1-866-4USWAGE (1-866-487-9243). Information is also available at www.wagehour.dol.gov.

###

U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.