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ESA News Release: [03/28/2006]
Contact Name: Roger Gayman
Phone Number: (415) 975-4742
Release Number: 06-246-SAN

Labor Department Sues Glendale Firm for at Least $900,000 in Unpaid Back Wages and Damages

Janitors Cleaned Movie Theaters throughout Southern California

SAN FRANCISCO — The U.S. Department of Labor announced today the filing of a lawsuit against Glendale, California-based, Janitorial Carpet's Maintenance for minimum wage, overtime pay and recordkeeping violations of federal law. The violations resulted from the employer's improper classification of workers as independent contractors.

"This administration is committed to ensuring that workers are paid all the wages they have earned," said Secretary of Labor Elaine L. Chao. "Through pursuit of this legal action, the department is seeking back wages and damages that will total at least $900,000 for these workers."

The suit was filed in U.S. District Court for the Central District of California seeking a total of at least $900,000, including liquidated damages and back wages, for work performed between July 1, 2003 and July 1, 2005, in movie theatres throughout Southern California.

In addition to misclassifying employees as independent contractors, an investigation by the Labor Department's Wage and Hour Division determined that the employer was aware that some employees brought relatives to work with them to help complete a heavy workload within the required timeframe. None of these helpers were paid. The suit seeks back wages and liquidated damages for both the workers on the payroll and their helpers.

The federal Fair Labor Standards Act requires that non-exempt employees earn no less than the federal minimum wage and one and one-half times their regular rate for hours worked over 40 per week. The FLSA also requires employers to maintain accurate time and payroll records.

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.