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Archived News Release--Caution:
information may be out of date.
For more information call: 202-219-8211
Bonewco Fashions, a New York City garment manufacturer,
has paid $19,623 in back wages owed to 45 former employees of now-defunct Seo
Fashions, a contractor that produced goods carrying the Kathie Lee label for
Wal-Mart stores.
Secretary of Labor Robert B. Reich said Bonewco, which
subcontracted the "Kathie Lee" garment sewing job to Seo Fashions through its
jobbers, has also agreed to oversee its contractors' compliance with wage and
hour standards in the future.
"I'm pleased that Bonewco has taken these steps
voluntarily to minimize the likelihood of a recurrence of this problem," Reich
said. "This represents precisely the kind of involvement and commitment by
manufacturers needed to wipe out sweatshops."
Reich pointed out that under the agreement Bonewco will be
required to fully comply with the "hot goods" provisions of the federal Fair
Labor Standards Act (FLSA), which prohibits interstate distribution, shipment
or sale of goods produced in violation of the minimum wage, overtime pay, and
child labor laws.
"When employers try to duck their legal responsibility to
pay their workers, the hot goods' provision in the federal law -- and now also
in New York state's law -- is proving to be an important tool in our
enforcement arsenal," Reich noted.
Bonewco also agreed to pay $22,000 in civil money
penalties assessed by the Labor Department's Wage and Hour Division against Seo
Fashions for repeat and willful FLSA violations. Seo was located at 307 W. 38th
Street in Manhattan's garment district.
The Fair Labor Standards Act covers more than 110 million
workers nationwide. It sets the current federal minimum wage at $4.25 an hour,
and generally requires overtime pay for all hours worked over 40 in any
workweek. It also protects against child labor abuse and requires employers to
keep accurate time and payroll records.
Archived News Release--Caution:
information may be out of date.
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