Wage and Hour Division (WHD)

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SAN FRANCISCO, CA -- The U.S. Department of Labor has filed suit against a Los Angeles garment manufacturer to collect $209,984 in back wages for 139 garment workers. The suit alleges that Save On Cost Manufacturing, Inc. and owner No Keun Kwak failed to maintain time and payroll records and failed to pay overtime wages as required by federal law. In a separate action, the Department also assessed $146,300 in fines for willful violations by the company.

Secretary of Labor Elaine L. Chao said, “The Department of Labor is committed to strong enforcement of the law to ensure that all workers, particularly low-wage workers, are paid the overtime they are entitled to receive.” The department’s Wage and Hour Division recovered nearly $200 million in back wages in fiscal year 2004 for more than 288,000 workers.

The department filed the suit in U.S. District Court for the Central District of California as a result of an investigation by the Wage and Hour Division. The investigation determined that the company did not pay workers overtime rates for all hours worked over 40 in a workweek. The Fair Labor Standards Act (FLSA) requires that employees earn no less than the federal minimum wage for all hours worked, and one-and-one-half times their regular rate for hours worked over 40 per week.

The complaint also alleged that the company employed homeworkers in violation of the homeworker regulations and violated the anti-discrimination provisions of the FLSA. All the affected workers are Hispanic.

The back wage compensation sought covers work performed since November 2001. This is the department’s first investigation of the company.

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.

Chao v. Save On Costs Manufacturing, Inc. and No Keun Kwak

Civil Action File No.: CV 04-9936

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