Wage and Hour Division (WHD)

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CHICAGO, IL --

The U.S. Department of Labor found that 108 current and former employees at a cheese processing facility in Elgin, Illinois, were underpaid. After an investigation, Grater, Inc. has paid $181,895 in overtime back wages to these workers.

“The Department of Labor is committed to helping workers seek justice and receive all of the wages they have earned,” said Secretary of Labor Elaine L. Chao. “This action restores nearly $182,000 to these workers in Illinois and is further testament to this Administration’s determination to protect all workers, particularly low-wage earners.”

The department’s Wage and Hour Division in Chicago investigated Grater Inc. under the Fair Labor Standards Act (FLSA), which is the federal minimum wage and overtime law. The investigation disclosed that employees worked 50-70 hours per week and were not paid overtime pay. The company also failed to keep an accurate record of hours worked by employees. The overtime pay violations occurred from January 2003 to January 2004.

After the Wage and Hour Division explained the requirements of the law, Grater Inc. changed its payroll practices to ensure that all workers are paid properly. The company cooperated fully during the investigation and agreed to comply in the future.

The Fair Labor Standards Act requires employees to be paid the federal minimum wage of $5.15 for all hours worked and time and one-half the regular rate of pay for hours worked over 40 in a week. Employers must also maintain accurate time and payroll records.

The Wage and Hour Division recovered nearly $200 million in back wages in fiscal year (FY) 2004 for more than 288,000 workers. Average days to resolve a complaint decreased in FY 2004 from 108 days to 92 days.

For more information, 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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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.