Wage and Hour Division (WHD)

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SAN FRANCISCO -- The U.S. Department of Labor has assessed civil money penalties totaling $337,000 against two garment factories in San Francisco for repeated and willful violations of the Fair Labor Standards Act (FLSA). This is the maximum penalty allowed under the department's FLSA regulations.

Wins of California, Inc., Mrs. You Nor (Anna) Wong, President, and Mr. Tohan (Jimmy) Quan were assessed a penalty of $248,000. Win Fashion, Inc., Mr. Tohan (Jimmy) Quan, President, and Mrs. You Nor (Anna) Wong were assessed a penalty of $89,000.

"Because of Wins' continued evasion of its obligations to employees, we asked the State of California to provide immediate relief to the Wins workers through a state fund established for garment workers. We are pleased the state agreed to our request and is helping these workers," said Tammy D. McCutchen, Administrator of the department's Wage and Hour Division. Officials from the State of California have informed the department that, from 11:00 a.m. to 8:00 p.m. today, they will be distributing $865,000 to 235 workers from the California Back Wages and Taxes Account.

"We have assessed civil money penalties, however, to send a clear signal to all employers, especially Wins, that California's generous action does not absolve employers of their duty to fully and fairly compensate their workers," McCutchen continued. "We will continue to aggressively pursue Anna Wong and Jimmy Quan until justice is done. Secretary of Labor Elaine L. Chao is committed to protecting every American worker."

The department's Wage and Hour Division began an investigation of Wins in the summer of 2001 after allegations that the firm had failed to meet its payrolls for several weeks. The department determined that Wins owes almost 260 workers a total of approximately $900,000 in back wages. The department initiated a "hot goods" action against Wins in federal district court that resulted in $420,000 being paid into a "lockbox" escrow account for the benefit of the workers. When Wins' owners tried to circumvent the court order mandating deposits into the lockbox, the department sought a contempt order and initiated proceedings to force Wins and the company's owners to divulge assets available to pay the workers. However, distribution of the lockbox funds to the workers was frustrated by Wins filing for bankruptcy. The bankruptcy trustee and other creditors filed claims against the lockbox funds. Because of these claims, a court order has prohibited the department from distributing the lockbox funds to workers.

The FLSA, which requires the payment of minimum wage and overtime, provides for the assessment of civil money penalties for repeated and willful violations. The firm has 15 days to file an exception to the assessment.

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.dol.com.

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