Wage and Hour Division (WHD)

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SEATTLE -- Staffworks, Inc., a San Clemente, Calif., company operating in 24 locations across 11 states including Clackamas, Ore., and Chehalis, Wash., has paid $637,951 in back wages to 878 employees for violations of federal overtime laws, the U.S. Department of Labor reported today.

“This administration is committed to ensuring that employees receive the wages they have earned,” said Secretary of Labor Elaine L. Chao. “Through the department’s determined efforts, $637,951 was recovered in back pay for these workers. The department also recovered more than $197 million in back wages for U.S. workers throughout the country last year.”

An investigation by the department’s Wage and Hour Division found that the company paid commissions to employees based on fees negotiated with individual truck drivers to unload the goods. However, no additional compensation was paid for hours worked over 40 per week.

The employees worked at 24 locations in California, Kansas, Maryland, Minnesota, Nebraska, North Carolina, Ohio, Oregon, Tennessee, Texas and Washington.

The investigation covered the period from Jan. 19, 2002, through Jan. 17, 2004.

Under the federal Fair Labor Standards Act (FLSA), employers are required to pay covered employees at the rate of one and a half times their regular rate of pay for hours worked over 40 in each workweek.

The Wage Hour Division recovered nearly $197 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 about the FLSA, call the Portland Wage and Hour Office at 503-326-3051 or the department’s toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available at www.wagehour.dol.gov.

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