Wage and Hour Division (WHD)

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SAN FRANCISCO -- On Friday, November 15th, the U.S. Department of Labor prevailed in its efforts to maintain its claim to back wages owed to some 250 former employees of Wins of California.

Bankruptcy Court Judge Thomas E. Carlson ruled that workers' wages would be given priority treatment before other creditors are paid from bankruptcy estate funds.

"The Department is encouraged by Friday's ruling by the bankruptcy court and we will continue our efforts to fight on behalf of these workers," said Tammy McCutchen, Administrator of the Labor Department's Wage and Hour Division.

The FLSA requires that employees receive not less than one and one-half times their regular rate of pay for any work in excess of 40 hours in a week.

The Labor Department continues to pursue its lawsuit against Wins officers Jimmy Quan and Anna Wong in the district court and plans to file a brief tomorrow opposing another creditor's claim to monies believed to belong to the workers. The lawsuit is scheduled for trial on February 3, 2003.

In a separate action on October 9th, the Department assessed $337,000 in civil money penalties against the company, and against Quan and Wong, individually.

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