Wage and Hour Division (WHD)

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SAN FRANCISCO -- AR Casting, Inc., a North Hollywood manufacturer of small fashion jewelry, has paid $27,058 in back wages to 27 employees to settle a U.S. Department of Labor complaint that the company failed to pay overtime wages earned by workers.

"The Department of Labor is committed to ensuring all workers are paid the full wages they are entitled to receive," said George Friday, regional administrator of the Labor Department's Wage and Hour Division in San Francisco. "Workers who put in extra hours beyond the traditional work week are entitled to higher overtime pay for those hours."

Friday pointed out that the Wage and Hour Division recovered more than $212 million in back wages nationwide in fiscal year 2003 - a 21 percent increase over FY 2002."

The investigation of AR Casting at 11100 Cumpson St., #21 in North Hollywood, determined that workers assembling belt buckles, key chains and other small jewelry items were paid a fixed hourly wage for all hours worked, and did not receive overtime compensation for hours worked in excess of 40 in a week. The Fair Labor Standards Act (FLSA) requires that employees eligible for overtime must be paid one-and-one-half times their regular rate of pay for hours worked over 40 per week. The company attempted to disguise the prohibited practice by paying employees by check for a standard 40-hour workweek, and paying them in cash at the standard hourly rate for any additional work hours. The company was cited for failing to maintain accurate records of the hours worked and wages earned by employees.

The back wages compensate employees for work performed during a two-year period ending in September 2003. All employees have been paid in full. The company has revised its payroll and record-keeping procedures and has agreed to future compliance with the law.

For more information about the FLSA, call the Wage and Hour office in Glendale at 818-240-5274, or the Department of Labor's toll-free help line at 1-866-4US WAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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