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ESA News Release: [10/09/2007]
Contact Name: Diana Petterson or Elizabeth Todd
Phone Number: (214) 767-4776, ext. 222 or 221
Release Number: 07-0926-DAL

U.S. Labor Department files suit against Houston-based grocery chain to recover more than $2 million dollars in overtime back wages

Nearly $269,000 in civil penalties also assessed

HOUSTON — The U.S. Department of Labor's Wage and Hour Division has filed a lawsuit in Houston against the Hong Kong Group Inc., and Hai Du Duong, Ha Duong and Tommy Vo, for allegedly failing to properly pay 391 employees more than $2 million in back wages in violation of the Fair Labor Standards Act (FLSA). Civil money penalties totaling $268,812 also have been assessed.

The complaint was filed in the U.S. District Court for the Southern District of Texas against four grocery stores and the stores' owner, Hai Du Duong; his wife, Ha Duong; and the general manager, Tommy Vo. The investigation, covering the period between March 1, 2003, and February 28, 2006, found that employees were not paid the appropriate minimum and overtime wages.

"The Department of Labor is committed to enforcing the law to ensure that employees receive the wages to which they are legally entitled," said Wage and Hour Division Administrator Paul DeCamp. "In this case, the department recovered more than $2 million dollars in overtime back wages for workers employed by Hong Kong Group."

A previous Wage and Hour Division investigation of Hong Kong Group covering the period between October 2002 and October 2004 found that 119 employees were due $161,509 in back wages. At that time, the employer agreed to pay back wages and comply with the FLSA. However, during the current investigation, it was alleged that employees had been required to return the back wages they had received to the employer. The $268,812 in civil money penalties was assessed for willful violations of the law.

The FLSA requires that covered employees be paid at least the federal minimum wage of $5.85 an hour for all hours worked, plus time and one-half their regular rates of pay for hours worked in excess of 40 per week, unless otherwise exempt. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009. Employers must also maintain accurate time and payroll records.

The Wage and Hour Division concluded 31,987 compliance actions and recovered more than $171 million in back wages for more than 246,000 employees in fiscal year 2006. Back-wage collections last year represent a 30 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 14 percent since 2001.

For more information about the FLSA and other federal wage laws, call the Department of Labor's toll-free helpline at (866) 4US-WAGE (487-9243) or the Wage and Hour Division's district office in Houston at (713) 339-5500. Information is also available on the Internet at www.wagehour.dol.gov.

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