Wage and Hour Division (WHD)

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MEMPHIS, Tenn. -- American Paper Company has paid approximately $240,000 due 207 Memphis employees after the company missed two payrolls in March. The firm met minimum wage and overtime obligations after the U.S. Labor Department posted notices on March 28 that goods in the Memphis warehouse could not be shipped across state lines until the workers were paid.

The action followed an investigation by the departments Wage and Hour Division in Nashville that found the Long Island, New York-based companys Memphis facilities had violated the minimum wage, overtime-pay and hot goods provisions of the Fair Labor Standards Act. The company operates two paper mills and one warehouse in Memphis to produce and ship toilet paper and tissue products.

Any products shipped after the violations occurred are considered hot goods, those produced by workers whose employers fail to meet their legal obligation to pay minimum wages and overtime pay. American Paper had been preparing to ship over 50 truckloads of paper products without paying the overdue wages when the Department of Labor posted the notices prohibiting the shipment of the goods.

We cannot allow production contractors to continue to make a profit while workers are denied their wages, said Alfred H. Perry, regional administrator for wage and hour, Atlanta. This action was taken in the interest of the affected workers.

Following negotiations between the Labor Department and American Papers corporate offices in New York, funds were made available to remedy the minimum wage and overtime pay violations. Wage and Hour removed the hot goods notices from the facility on Tuesday, April 2.

The Wage and Hour Division enforces the Fair Labor Standards Act (FLSA), which sets the federal minimum wage at $5.15 an hour and generally calls for time-and-a-half for hours worked over 40 in a workweek. The FLSA also regulates the hours and types of jobs that youth may work.

For more information on the requirements of the FLSA, call the Department of Labors toll-free help line at 1-866-4USWAGE (1-866-487-9243 or contact the Nashville district office at 615-781-5344. 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.