Wage and Hour Division (WHD)

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HOUSTON, TX -- The U.S. Department of Labor found 119 current and former employees, mostly Hispanic and Asian Pacific Americans, were underpaid by a Houston retail grocery chain. Hong Kong Market has agreed to pay $161,509 in back wages after an investigation by the Labor Department’s Wage and Hour Division.

“The Department of Labor is committed to helping workers seek justice and receive the pay to which they are entitled,” said Al Robinson, Jr., acting administrator of the U.S. Labor Department’s Wage and Hour Division. “In this case, we recovered $161,509 in back wages for the workers of Hong Kong Market. Through the Department’s determined efforts, nearly $200 million in back wages was recovered for workers last year.”

The investigation, covering the period from October 2002 to October 2004, determined that Hong Kong Market failed to properly pay the minimum wage and overtime compensation required by the Fair Labor Standards Act (FLSA). Additionally, the company failed to maintain accurate time records as mandated by the FLSA.

The company was paying non-exempt employees a semi-monthly or monthly salary for all hours worked. As a result, some of the employees were earning below the required hourly minimum wage. The company also failed to compensate those employees who worked more than 40 hours in a work week the proper overtime pay. Under the FLSA, covered employees must receive time-and-one-half their hourly rate for any overtime hours over 40 in a work week.

The company has corrected its payment practices and has agreed to pay back wages due and to comply with the FLSA in the future.

The Houston grocery store chain includes Hong Kong Group Inc., doing business as Hong Kong Market #1; Pacific Ocean Enterprise Inc., doing business as Hong Kong Market #2; Hong Land Corporation, doing business as Hong Kong Market #3; and B&B Corner Corp., doing business as Hong Kong Market #4.

The Wage and Hour Division recovered nearly $200 million in back wages in fiscal year 2004 for more than 288,000 workers. Average days to resolve a complaint decreased in fiscal 2004 from108 days to 92 days.

For more information about the FLSA, call the Wage and Hour Houston office at (713) 339-5500 or 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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