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Archived News Release — Caution: Information may be out of date.
OPA News Release: [10/09/2002]
Contact Name: Tino
Serrano
Phone Number: (415) 975-4742
U.S. Department of Labor Fines Wins of California and
Win Fashion $337,000 for Repeated and Willful Wage Violations
SAN FRANCISCO – The U.S. Department of Labor has assessed
civil money penalties totaling $337,000 against two garment factories in San
Francisco for repeated and willful violations of the Fair Labor Standards Act
(FLSA). This is the maximum penalty allowed under the department’s FLSA
regulations.
Wins of California, Inc., Mrs. You Nor (Anna) Wong, President, and Mr.
Tohan (Jimmy) Quan were assessed a penalty of $248,000. Win Fashion, Inc., Mr.
Tohan (Jimmy) Quan, President, and Mrs. You Nor (Anna) Wong were assessed a
penalty of $89,000.
“Because of Wins’ continued evasion of its obligations to
employees, we asked the State of California to provide immediate relief to the
Wins workers through a state fund established for garment workers. We are
pleased the state agreed to our request and is helping these workers,”
said Tammy D. McCutchen, Administrator of the department’s Wage and Hour
Division. Officials from the State of California have informed the department
that, from 11:00 a.m. to 8:00 p.m. today, they will be distributing $865,000 to
235 workers from the California Back Wages and Taxes Account.
“We have assessed civil money penalties, however, to send a clear
signal to all employers, especially Wins, that California’s generous
action does not absolve employers of their duty to fully and fairly compensate
their workers,” McCutchen continued. “We will continue to
aggressively pursue Anna Wong and Jimmy Quan until justice is done. Secretary
of Labor Elaine L. Chao is committed to protecting every American
worker.”
The department’s Wage and Hour Division began an investigation of
Wins in the summer of 2001 after allegations that the firm had failed to meet
its payrolls for several weeks. The department determined that Wins owes almost
260 workers a total of approximately $900,000 in back wages. The department
initiated a “hot goods” action against Wins in federal district court
that resulted in $420,000 being paid into a “lockbox” escrow account
for the benefit of the workers. When Wins’ owners tried to circumvent the
court order mandating deposits into the lockbox, the department sought a
contempt order and initiated proceedings to force Wins and the company’s
owners to divulge assets available to pay the workers. However, distribution of
the lockbox funds to the workers was frustrated by Wins filing for bankruptcy.
The bankruptcy trustee and other creditors filed claims against the lockbox
funds. Because of these claims, a court order has prohibited the department
from distributing the lockbox funds to workers.
The FLSA, which requires the payment of minimum wage and overtime,
provides for the assessment of civil money penalties for repeated and willful
violations. The firm has 15 days to file an exception to the assessment.
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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Archived News Release — Caution: Information may be out of date.
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