Wage and Hour Division (WHD)

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SAN FRANCISCO -- To resolve a lawsuit filed by the U.S. Department of Labor, Marianas Garment Manufacturing, Inc., and its lead principal, Nicholas Fong, have agreed to pay $1,595,000, plus interest to 764 garment workers for uncompensated overtime wages for the period April 7, 1997 through April 7, 1999.

A consent judgment signed by the U.S. District Court Judge Alex R. Munson resolved the lawsuit filed in the U.S. District Court of the Northern Marianas Islands on Sept. 27, 2002. As a condition of the consent judgment, the company and its lead principal agreed to comply with the Fair Labor Standards Act (FLSA). Specifically, the company agreed to pay not less than one and one-half times the employees' rates of pay for all hours worked in excess of 40 in a workweek. Additionally, the company agreed to maintain accurate records of employees' hours of work.

The back wages are being paid via an installment payment plan. The first payment will be Nov.1, 2002, and the remaining back wages will be paid by July 15, 2003. The department can require immediate payment of the full amount owed should the company fail to make timely payments pursuant to the installment plan.s The company was also assessed a civil monetary penalty of $5,000.

The department's Wage and Hour Division determined that the company failed to fully compensate its garment workforce for all of their overtime hours when it failed to accurately record all of the hours worked by employees.

The FLSA requires that covered workers be paid at a rate not less than one and one-half times the employee's 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.

For more information on federal pay laws, call the department's toll-free help line 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.