Wage and Hour Division (WHD)

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SAN FRANCISCO -- La Mode, Inc. headquartered in Los Angeles, has paid $104,420 in back wages after an investigation by the U.S. Department of Labor revealed that 186 employees of the company factory in Saipan suffered missed paydays and were not paid overtime as required by federal law.

"The Department of Labor is committed to strong enforcement of the law to ensure that all employees receive the wages they earn." said George Friday, regional administrator of the Wage and Hour Division. "The $104,000 in earnings recovered in this case is particularly significant because these garment workers receive such modest wages."

Specifically, the investigation conducted by DOL's Wage and Hour Division revealed that workers at the La Mode manufacturing facility in Saipan were not paid when the firm failed to make a payroll in April, and twice in October. In addition, workers were not paid for hours worked in excess of 40 hours in a workweek. The Fair Labor Standards Act (FLSA) requires that employees be paid one-and-one-half times their regular rate of pay for work hours in excess of 40 per week.

The affected employees, most of who are Chinese women, produced shirts, blouses and jackets sold nationwide by parent company La Mode, Inc., and by Golf Apparel Brands, Inc. All back wages have been paid and the company has agreed to comply with federal wage and hour laws in the future.

The Wage and Hour Division (WHD) recovered more than $212 million in back wages in fiscal year (FY) 2003 -- a 21 percent increase over the record setting amount in FY 2002. Average days to resolve a complaint decreased in FY 2003 from 129 days to 108 days. WHD assessed employers nearly $10 million in civil money penalties in FY 2003.

For more information about federal wage and hour laws, call the Los Angeles Wage and Hour office at (213) 894-6375 or the Department of Labor's toll-free help line at 1-866-4US WAGE (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.