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OPA News Release: [04/18/2005]
Contact Name: Deanne Amaden
Phone Number: (415) 975-4741
Release Number: 05-708-SAN (SF-039)

U.S. Department of Labor Collects $40,000 in Back Wages For 59 California Chicken Processing Employees

SAN FRANCISCO—Overhill Farms, a Vernon, Calif.-based chicken processing company, has agreed to pay $40,000 in back wages owed by one of its subcontractors to 59 Hispanic workers. The subcontractor, FPT/Fresh Pak, went bankrupt and Overhill Farms agreed to cover the back wages although it was not legally required to do so.

The U.S. Department of Labor discovered minimum wage and overtime violations during an investigation into the subcontractor’s pay practices over a five-month period ending December 2004.

Investigators of the department’s Wage and Hour Division found that FPT/Fresh Pack misclassified as independent contractors employees they contracted to work at a de-boning plant. FPT/Fresh Pack violated the Fair Labor Standards Act (FLSA) when it failed to meet payroll for two weeks, pay minimum wages and overtime pay, and keep adequate payroll records. The subcontractor also illegally deducted the cost of aprons, gloves, hair nets and other required equipment from workers’ paychecks.

“The Department of Labor is committed to helping workers, especially low-wage earners, receive all the wages to which they are entitled under the law,” said George Friday, regional administrator of the Wage and Hour Division in San Francisco.

The violations came to light as a result of employees contacting the Mexican Consulate in Los Angeles, a partner with the Wage and Hour Division in the EMPLEO program. EMPLEO is an alliance of federal and state agencies, the Diocese of San Bernardino, Regional Hispanic Chamber of Commerce, CHIRLA (Coalition for Humane Immigrant Rights of Los Angeles) and the consulates of Mexico, El Salvador, Guatemala, Honduras, Nicaragua and Costa Rica to educate Spanish-speaking workers and employers on workplace rights and responsibilities. The EMPLEO toll-free help line (1-877-552-9832) has relayed information assisting a number of investigations.

The back wages, already paid by Overhill to the Department of Labor, are being distributed to the affected former FPT/Fresh Pack workers. Overhill Farms processes chicken into frozen foods for major clients such as Panda Express, Sara Lee, and Delta Airlines.

The Wage and Hour Division recovered nearly $200 million in back wages in fiscal year (FY) 2004 for more than 288,000 workers.

For more information about the FLSA, call the Department of Labor’s toll-free help line at 1-866-4USWAGE (1-866-487-9243) or contact the Los Angeles Wage and Hour office at (213) 894-6375. Information is also available on the Internet at www.wagehour.dol.gov.