Wage and Hour Division (WHD)

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SAN FRANCISCO, CA -- A Los Angeles apparel firm has paid 167 workers nearly $181,000 in overtime pay based on an investigation conducted by state and federal labor agencies. The U. S. Department of Labor’s Wage and Hour Division found that Out of the Blue Inc. violated the Fair Labor Standards Act (FLSA) by paying employees straight time when they worked overtime hours.

The FLSA requires that all non-exempt employees earn no less than one-and-one-half times their regular rate for hours worked over 40 per week. Firms must pay employees the overtime premium on their average hourly rate, $10.13 in this case. The investigation covered hours worked between March 1, 2003 and December 3, 2004.

Out of the Blue specializes in finishing blue jeans manufactured by other firms, sanding and grinding the jeans to give them a unique look. The jeans are sold by major retailers such as Macy’s, Nordstrom’s, and Saks Fifth Avenue.

“The Department of Labor is committed to strong enforcement of the law to ensure that all workers, are paid the overtime they are entitled to receive,” said George Friday, Jr., regional administrator of the Wage and Hour Division. The federal agency conducted the investigation together with California’s Division of Labor Standards Enforcement, the California Occupational Safety and Health Administration, and the Employment Development Department. The California Division of Labor Standards Enforcement also assessed a $100,000 fine because the firm failed to register with the state as a garment manufacturer.

Most of the workers due back wages are Hispanic. The Labor Department and the state agencies participating in this investigation are partners in a project assisting Spanish-speaking workers and their employees with work-related concerns. Known as Employment Education and Outreach (EMPLEO), the alliance established a local toll-free help line, 1-877-55-AYUDA (877-552-9832). Other EMPLEO partners include the U.S. Equal Employment Opportunity Commission; the Diocese of San Bernardino, the consulates of Mexico, El Salvador, Guatemala, Honduras, Nicaragua, and Costa Rica; the Regional Hispanic Chamber of Commerce; and the Coalition of Human Immigration Rights.

For more information about the FLSA, call the Los Angeles Wage and Hour office at (213) 894-6375 or the Department of Labor's toll-free help line at 1-866-4US WAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov. The U.S. Labor Department’s Wage and Hour Division recovered nearly $200 million in back wages in fiscal year 2004 for more than 288,000 workers.

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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.