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ESA News Release: [12/17/2003]
Contact Name: Dolline Hatchett
Phone Number: (202) 693-4651

U.S. Department of Labor Settles Lawsuits: New York City Garment Workers to Receive $410,000 in Back Wages

WASHINGTON—The U.S. Department of Labor announced today that it has filed a consent judgment and order with the U.S. District Court, Eastern District of New York, for $410,000 in back wages and damages as part of a settlement of lawsuits brought by the department against New York garment contractors and manufacturers.

Danmar Finishing Corp. and Mario Sweater Contracting Corp., along with Joseph Cartolano, owner of the manufacturers America’s Sweater Sport Corp and American Knitwear, Inc., and Danmar and Mario principals, Dragisa Dimitraskovic, Mica Jankovic and Jelena Dimitraskovic, were sued by the Labor Department in three separate actions in 2002 for numerous alleged violations of the federal Fair Labor Standards Act (FLSA).

“The serious and aggravated violations committed by these defendants required the department to initiate repeated litigation since May 2002 to recover $410,000 in back wages and damages and to protect the rights of these garment workers,” said U. S. Secretary of Labor Elaine L. Chao. “The Department of Labor is committed to ensuring that workers, especially low-wage workers as in this case, are paid the full wages and overtime required under the law.”

The consent judgment against Danmar, which must first be approved by the court, requires that Danmar pay $400,000 in back wages and liquidated damages to 175 employees for overtime violations and $10,000 to 13 employees for compensation due to the firm’s retaliatory actions against them. The judgment also prohibits the Danmar defendants from future violations of the FLSA’s overtime, recordkeeping and retaliation provisions.

The order relating to the manufacturer defendants restrains the shipment of any goods in interstate commerce manufactured in violation of the FLSA by them or their contractors. This provision is commonly referred to as the “hot goods” provision of the FLSA. The consent order also requires the manufacturers to monitor its contractors to ensure their future compliance with the FLSA.

The FLSA requires the payment of the federal minimum wage and the payment of overtime compensation at one and one-half an employee’s regular rate of pay for all hours worked over 40 in a single workweek. The FLSA also has recordkeeping requirements and anti-retaliation provisions. For more information about the FLSA, call the Department of Labor’s toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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