Wage and Hour Division (WHD)

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HOUSTON, TX -- Quality Christmas Tree Co. Ltd., Houston, Texas, has agreed to pay $204,000 after a U.S. Department of Labor investigation found that 909 predominantly Hispanic, low-wage nursery workers are due back minimum and overtime wages.

“Docking hourly employees for short rest breaks and for one-hour lunches, when only 30 minutes are taken, is illegal,” said Cynthia Watson, Wage and Hour regional administrator in Dallas. “The rest breaks are considered hours worked under the Fair Labor Standards Act (FLSA).”

The investigation, conducted by the department’s Wage and Hour Division, covered former and current employees who worked for the company during the period October 2002 to October 2004. Investigators determined that Quality Christmas Tree, doing business as Houston Garden Center, had violated the overtime provisions of the FLSA by docking hourly employees for short rest breaks, resulting in underpayments. The company also violated the pay requirements for salaried, exempt managers by making deductions for uniforms, cash shortages and other losses.

Due to company’s prior history of FLSA violations, a civil monetary penalty in the amount of $39,380 was assessed. Back wages will be paid by May 15 and the penalty will be paid by June 16. The company voluntarily entered into a consent judgment with the Wage and Hour Division which bars it from future violation of the provisions of the FLSA.

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. Employers must also maintain accurate time and payroll records.

The Wage and Hour Division recovered nearly $200 million in back wages in fiscal year 2004 for more than 288,000 workers. Average days to resolve a complaint decreased in fiscal 2004 from 108 to 92 days.

For more information about the FLSA, call the Wage and Hour Houston office at (713) 339-5500 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.

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