Wage and Hour Division (WHD)

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NEW YORK -- The U.S. Department of Labor announced today the filing of a lawsuit against America's Sweater Sport, Corp., American Knitwear, Inc., and Joseph Cartolano for violations of the Fair Labor Standards Act (FLSA). The defendants operate a clothing manufacturing and assembling business at 456 Johnson Ave., Brooklyn, NY. The department had previously filed a lawsuit charging Danmar Finishing Corp. and its principals, operating at the same address, with FLSA violations.

The suit alleges that these defendants acted directly and indirectly in their own and Danmar's interest in relation to the employees at their shared location and were an employer within the meaning of the FLSA. Thus, the complaint seeks to hold America's Sweater, American Knitwear and Cartolano jointly responsible for the failure to pay overtime to 175 garment workers employed at the site since July 1999. The complaint seeks an injunction restraining future violations as well as unpaid overtime and an equal amount in liquidated damages for the 175 employees of the firms. Additionally, the complaint charges the defendants with illegally shipping the goods manufactured by them and Danmar in violation of the FLSA in interstate commerce. This provision is commonly referred to as the "hot goods" provision of the FLSA, which makes it illegal for any person to ship goods in interstate commerce that have been manufactured in violation of the FLSA. This lawsuit is the third lawsuit filed by the Labor Department involving the garment workers employed at 456 Johnson Ave. The first suit was filed against Danmar and its principals alleging willful violations of the overtime and recordkeeping provisions of the FLSA. The second lawsuit alleged the discriminatory discharge of Maria Arriaga and discriminatory practices against other employees by Danmar. The current lawsuit charges the defendants with overtime violations and "hot goods" violations, but not the retaliation charges filed against Danmar. The department has also filed a motion seeking a preliminary injunction against Danmar Finishing Corp. and its principals asking for the immediate reinstatement of Maria Arriaga to her employment. The request to the Court for emergency relief seeks to restore Ms. Arriaga to her longstanding position as a sewing machine operator at Danmar where she had worked continuously for over ten years as a productive employee prior to her discharge. According to Tammy McCutchen, Administrator of the department's Wage and Hour Division, the discharge of Arriaga has frightened other employees and chills their cooperation with the Labor Department's enforcement proceeding. "The immediate reinstatement of Arriaga is necessary," said McCutchen, "to prevent intimidation, and to demonstrate to employees that they may testify truthfully without fear of retaliation." She noted that all of these legal actions follow an investigation by the Wage and Hour Division's office in New York City and demonstrate the Labor Department's commitment to hold all responsible parties accountable for their compliance with the law. The FLSA requires that covered employees be paid the minimum wage of $5.15 per hour for all hours worked and time and one-half their regular rate of pay for hours worked over 40 per week. The FLSA also requires employers to maintain accurate time and payroll records. For more information about the FLSA, 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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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.