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ESA News Release: [06/13/2006]
Contact Name: Brad Mitchell
Phone Number: (312) 353-6976
Release Number: 06-0926-CHI

Sterling Jewelers Agrees to Pay $1.29 Million in Back Wages to 16,820 Workers in 41 States

WASHINGTON — Sterling Jewelers Inc., of Akron, Ohio, has agreed to pay $1,291,077 in back wages to resolve violations of the Fair Labor Standard Act (FLSA) overtime requirements, the Labor Department announced today. Sterling agreed to pay the back wages to 16,820 current and former employees of its retail stores operating at 1,200 locations in 41 states. The company does business under 14 retail names around the country.

"This administration is committed to ensuring that employers honor their obligation to pay their workers all the wages they have earned," said U.S. Secretary of Labor Elaine L. Chao. "In this case, we are recovering nearly $1.3 million dollars for almost 17,000 workers and making certain that they are properly compensated in the future."

A complaint and consent judgment were filed Monday, June 12, with the U.S. District Court for the Northern District of Ohio. The consent judgment also enjoins the company from future violations of the overtime pay provisions of the FLSA. Sterling voluntarily disclosed the violations to the department, and worked cooperatively with the department to ensure that the violations were fully and satisfactorily resolved.

The company failed to include incentive pay in the calculation of overtime and it failed to pay employees for all hours worked, which the employees had entered using the firm's electronic timekeeping system. Each of those violations contributed to workers being paid less than time and one-half their regular pay for hours worked over 40 in a single workweek as required by the FLSA. The back wage payments cover the period from Nov. 2, 2003 to Feb. 25, 2006.

The FLSA requires employers to pay covered employees at least the federal minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 in a week. Employers must also maintain accurate time and payroll records.

For more information on 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 Wage and Hour Division's home page at www.wagehour.dol.gov.

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