Wage and Hour Division (WHD)

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DALLAS, TX -- The U.S. Department of Labor has filed a lawsuit against Plastipak Packaging Inc., Garland, Texas, for allegedly failing to pay 167 of its manufacturing workers more than $795,000 in overtime pay.

“This action reflects our commitment to ensuring that workers are paid all the wages they have earned,” said Secretary of Labor Elaine L. Chao. “These people are owed $795,000 for the overtime hours they have worked and we will do everything we can on their behalf to get their money for them.”

The investigation, conducted by the department’s Dallas Wage and Hour Division, covered a two-year period from Jan. 5, 2002 to Jan. 5, 2004. The agency determined that Plastipak Packaging had violated the overtime provisions of the Fair Labor Standards Act (FLSA) by not properly paying employees one and one-half times their regular rate of pay for the overtime hours they worked.

Plastipak Packaging, a Plymouth, Mich.-based manufacturer of soft drink plastic bottles for major soft drink companies, paid manufacturing floor employees straight time for hours worked in excess of 40; paid a night time shift differential of 75 cents per hour and straight time after 40 hours instead of time and one-half, and paid a monthly production bonus without paying overtime on the bonus.

The FLSA requires that covered employees be paid the minimum wage for all hours worked plus time and one-half their regular rate of pay for hours worked over 40 per 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 2004 for more than 288,000 workers. Average days to resolve a complaint decreased in fiscal 2004 from 108 to 92 days.

For more information about the FLSA, call the Wage and Hour Dallas district office, at (817) 861-2150, metro number at (817) 261-4371 or the Department of Labor’s toll-free line at 1-866-4USWAGE (1-866-487-9243). Information is also available at www.wagehour.dol.gov and www.youthrules.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.