Wage and Hour Division (WHD)
U.S. Department of Labor
Dolton, Ill., company ordered to pay nearly $104,000 in back wages and damages to 35 employees following US Labor Department investigation
CHICAGO -- A federal judge in Chicago has ordered IMG Products Corp. of Dolton, Ill., a manufacturer of metal screws and parts, and its president, John Planton, to pay $103,912 in overtime wages and liquidated damages to 35 workers following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The business is now believed to be defunct.
“When employees are deprived of their rightful wages, even when a business dissolves, employers should know that the Labor Department will not hesitate to take action to recover those back wages,” said Thomas Gauza, district director of the Wage and Hour Division in Chicago.
The investigation determined that the company, formerly known as Illinois Machining Group, Illinois Machining Group Inc. and IMG Products Co., violated the Fair Labor Standards Act when Planton hired 35 workers even though he did not have the money to pay their wages. The unpaid compensation due to employees was determined to be $51,956. Because the violation was so egregious, in addition to paying the back wages owed, the judge ordered the company and Planton to pay the employees an equal amount in liquidated damages for a total of $103,912.
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 hourly rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records.
For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s Chicago District Office at 312-596-7230 or call the division’s national toll-free helpline at 866-4US-WAGE (487-9243). Information is also available online at http://www.dol.gov/whd.
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