Wage and Hour Division (WHD)

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SAN FRANCISCO -- A casino in the Commonwealth of the Northern Marianas Islands will pay $591,535.02 in back wages to settle charges filed by the U.S. Department of Labor that the company violated the overtime provisions of the federal Fair Labor Standards Act (FLSA).

A consent judgment resolving the lawsuit was signed by Northern Marianas Islands U.S. District Court Judge Alex R. Munson on Sept. 30, 2002. Under the terms of the judgment, Hong Kong Entertainment (Overseas) Investment, Ltd., doing business as Tinian Dynasty Hotel and Casino, and its lead principal, Man Kwan, agreed to pay overtime back wages for the period Feb. 6, 1999 through Feb. 9, 2001.

The back wages primarily resulted from the corporation's practice of paying a salary, without an overtime premium, to 287 employees who were scheduled to work at least 48 hours per week and were not exempt from the overtime provision of the FLSA. The departments Wage and Hour Division also determined that the company failed to properly record and pay for hours worked by non-salaried employees for work performed before and after their scheduled shift and during meal breaks.

The FLSA requires that covered workers be paid at a rate not less than one and one-half times the employees regular rate of pay for all hours worked in excess of 40 hours in a workweek. The law also requires covered employers to maintain complete and accurate records of employees and the wages, hours and other conditions and practices of employment.

In addition to paying back wages, the consent judgment requires future compliance with the FLSA and provides for post judgment interest.

The back wages and interest will be paid via an installment plan with the first payment on Nov. 15, 2002. Payments are to be completed by Nov. 15, 2004.

For more information on federal pay laws, call the departments toll-free help lines at 866-4USWAGE (866-487-9243) or contact the Saipan office at 670-233-0740.

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

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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.