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OPA News Release: [03/21/2002]
Contact Name: Geoff Embler
Phone Number: (202) 693-4650

Poultry Producer Agrees to Pay Back Wages
To Settle a Federal Law Suit

WASHINGTON -- For the third time in two years, the U.S. Department of Labor has come to an agreement with a major poultry producer to pay overtime wages to low-wage members of chicken catching crews.

Sanderson Farms Inc., with poultry processing plants in Mississippi and Texas, is the latest company to agree to Labor Department terms. The agreement calls for Sanderson to pay over $450,000 in back wages and interest to more than 500 workers.

Improving compliance with labor standards in low-wage industries is a top priority of Labor Secretary Elaine L. Chao's Wage and Hour Division. That office enforces federal minimum wage and overtime laws.

The Sanderson Farms agreement is a consent injunction that was signed by U.S. District Judge Walter J. Gex III on March 19. It ends a lawsuit filed by Labor Department lawyers. The injunction prohibits future violations of the Fair Labor Standards Act. It is similar to injunctions in two other Labor Department chicken catcher cases. In those cases, the agency secured corporate-wide compliance agreements from Perdue Farms, Inc. and the Continental Grain Company. A fourth lawsuit, against Tyson Foods, has not been resolved.

Under the latest agreement, Sanderson Farms will also pay back wages to many workers at all five company plants that use chicken catchers. Those plants are located in Laurel, Miss., Hazelhurst, Miss., McComb, Miss., Collins, Miss., and Bryan, Texas.

For more information about the laws administered by the Wage and Hour Division, 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.gov.

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