Friday, March 2, 2012

Levi Strauss agrees to pay more than $1 million in overtime back wages to nearly 600 employees following US Labor Department investigation

Overtime violations found at retail stores nationwide

SAN FRANCISCO, March 29, 2011 /PRNewswire-USNewswire/ -- LeviStrauss & Co. has agreed to pay $1,011,413 in overtime back wages to596 employees nationwide after the U.S. Department of Labor foundthat the company violated overtime and recordkeeping provisions ofthe federal Fair Labor Standards Act.

An investigation conducted by the San Francisco District Officeof the Labor Department's Wage and Hour Division determined that theSan Francisco-based company misclassified several groups of workers,including assistant store managers of newly acquired stores, asexempt from overtime. Although their counterparts at previouslyexisting stores were exempt from overtime compensation, the newlyhired employees were not.

"Misclassification of employees has serious and adverseconsequences for employees, as well as for corporations," saidSecretary of Labor Hilda L. Solis. "When violations of federal laborlaws are discovered, this department will take appropriate action toensure that workers receive the wages they deserve."

The company failed to record all hours employees worked in itspayroll system. Instead, the misclassified assistant store managerswere required to work off-the-clock during late night closings,early morning openings and staffing shortages. Variousadministrative employees working at the company's headquarters alsowere misclassified as exempt from FLSA coverage and found to be owedovertime back wages.

This investigation covered back wages for time worked over a two-year period. Levi Strauss has agreed to pay the back wages andcommitted to upgrade its time and attendance system, as well asmaintain future compliance with the law. The applicable employeesare now treated as non-exempt under the FLSA.

Founded in San Francisco in 1853, Levi Strauss was the firstcompany to manufacture blue jeans. Today, the company operates 164retail stores and employs more than 4,000 workers in the U.S., andits global operations span more than 100 countries.

The FLSA requires that covered employees be paid at least thefederal minimum wage of $7.25 for all hours worked, plus time andone-half their regular rates of pay, including commissions, bonusesand incentive pay, for hours worked beyond 40 per week. Employersare required to keep accurate records of all hours worked by coveredemployees. The FLSA provides an exemption from both minimum wage andovertime pay for workers employed as bona fide executive,administrative, professional and outside sales employees. It alsoexempts certain computer employees. To qualify, employees generallymust meet certain tests described in the act regarding their jobduties.

For more information about the FLSA, call the Wage and HourDivision's San Francisco office at 415-625-7720 or its toll-freehelpline at 866-4US-WAGE (487-9243). Information is also availableon the Internet at http://www.dol.gov/whd.

Editor's Note: A list indicating the city locations of LeviStrauss retail stores, offices and distribution centers in 30 statesand the District of Columbia follows this news release.

Locations of Levi Strauss Stores throughout the United States

State__ Cities Where Levi Strauss Stores, Officesand DistributionCenters are Located__

Arizona__ Casa Grande, Phoenix, Tempe, Tucson__

California__ Alpine, Barstow, Beverly Hills, Cabazon, Camarillo,Canoga Park, Commerce, Folsom, Gilroy, Irvine, Lake Elsinore,Lancaster, Malibu, Milpitas, Napa, Ontario, Orange, Petaluma, PismoBeach, Rancho Cucamonga, San Diego, San Francisco, Santa Barbara,Santa Clara, Santa Monica, San Ysidro, Thousand Oaks, Torrance,Tracy, Vacaville__

Colorado__ Boulder, Castle Rock, Denver, Lakewood, Loveland,Silverthorne__

Delaware__ Rehoboth Beach__

District of Columbia__ Washington__

Florida__ Augustine, Ellenton, Estro, Destin, Florida City,Miami, Orlando, Sunrise, Tampa, Wellington__

Georgia__ Dawsonville, Lawrenceville, Locust Grove__

Hawaii__ Honolulu, Waipahu__

Illinois__ Aurora, Chicago, Evanston, Gurnee, Schaumburg__

Indiana__ Edinburgh, Fremont__

Louisiana__ Baton Rogue, Gonzales__

Maryland__ Annapolis, Baltimore, Hagerstown, Hanover, Towson__

Massachusetts__ Boston, Dedham, Natick, Wrentham__

Minnesota__ Albertville, Bloomington, Medford, North Branch__

Missouri__ Branson, Hazelwood, Warrenton__

Nevada__ Jean, Las Vegas, Laughlin, Reno__

New Hampshire__ Tilton__

New Jersey__ Atlantic City, Elizabeth, Tinton Falls__

New York__ Central Valley, New York City, Niagara Falls,Riverhead, West Nyack__

North Carolina__ Concord, Mebane, Smithfield__

Ohio__ Aurora, Burbank, Jeffersonville, Monroe__

Oregon__ Lincoln City, Portland, Tigard, Troutdale, Woodburn__

Pennsylvania__ Gettysburg, Grove City, Lancaster, King ofPrussia, Philadelphia, Pottstown__

Rhode Island__ Providence__

South Carolina__ Myrtle Beach, North Charleston__

Tennessee__ Sevierville__

Texas__ Allen, Austin, Canutilla, Conroe, Cypress, Grapevine, ElPaso, Katy, Mercedes, San Marcos, Sugarland, Terrell__

Utah__ Park City, St. George__

Virginia__ McLean, Leesburg, Richmond, Williamsburg, Woodbridge__

Washington__ Auburn, Seattle, Tulalip__

Wisconsin__ Baraboo__

U.S. Department of Labor news materials are accessible at http://www.dol.gov. The information above is available in large print,Braille, audio tape or disc from the COAST office upon request bycalling 202-693-7828 or TTY 202-693-7755.

SOURCE U.S. Department of Labor

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