Wage and Hour Division (WHD)
U.S. Department of Labor
NASHVILLE, Tenn. -- The U.S. Department of Labor successfully invoked the “hot goods” provision of the Fair Labor Standards Act against a court-appointed receiver of now defunct Nashville-based manufacturer Hackett Precision Co. Inc., resulting in the immediate payment of $138,524.15 in back wages due to 33 former workers.
“The Labor Department will not allow an employer to have workers perform services and then not pay them,” said Sandra Sanders, the Wage and Hour Division’s district director in Nashville. “We are committed to protecting workers against exploitation, and we will use all available resources to pursue violators who deny workers their rightful pay.”
An investigation by the Labor Department’s Wage and Hour Division determined that the company had failed to compensate its employees for work performed during the company’s final weeks of operation. As a result, the FLSA’s hot goods provision was invoked, preventing the company’s court-appointed receiver from transporting or selling machinery manufactured by the company until employees received the wages they earned. Until the company shut its doors in November 2010, Hackett Precision produced tools and specialized machinery.
Whenever goods are produced in violation of the FLSA’s minimum wage, overtime or child labor provisions, the Labor Department can prevent those goods from being shipped as interstate commerce, which was the case with this company. This action is commonly referred to as invoking the hot goods provision and is an enforcement tool that the department is using to ensure fair wages for the nation’s workers.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week.
For more information about the FLSA, call the Wage and Hour Division’s Nashville District Office at 615-781-5343. Information is also available by calling the division’s toll-free helpline at 866-4US-WAGE (487-9243) or by visiting the Internet at http://www.dol.gov/whd.
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