The Department of Labor has ordered clothing company Levi Strauss to pay employees $1,011,413 in overtime back wages after finding that the company had violated portions of the Fair Labor Standards Act.
Worker misclassification led to the erroneous exemption of 596 employees from receiving overtime that was accrued over a period of two years.
"Misclassification of employees has serious and adverse consequences for employees, as well as for corporations," said Secretary of Labor Hilda L. Solis. "When violations of federal labor laws are discovered, this department will take appropriate action to ensure that workers receive the wages they deserve."
The error affected several groups of workers, including administrative employees and assistant managers of newly acquired stores, whose overtime hours were not recorded in the company's payroll
Levi Strauss, which employs more than 4,000 workers in the U.S., has agreed to pay employees what they are owed, and also promised to upgrade its time and attendance system.
Last year, diversified energy company Unit Corporation agreed to pay $579,910 in back overtime wages to more than 800 employees after an investigation by the Houston Labor Department, according to My San Antonio.
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