Overtime Lawyer Blog

Recently, a contractor for retailers such as Macy’s and Forever 21 reached a settlement with its employees for overtime compensation for “identifiable workers” and required the company pay for an independent monitor to oversee the company’s compliance with all workplace laws for one year.

Employees of Seventeen filed a lawsuit in July 2009 accusing the garment manufacturer and its owners of violating the Fair Labor Standards Act ("FLSA") by forcing workers to work 12-hour shifts, sometimes two or three shifts back-to-back, without overtime pay or breaks, six days a week. Other allegations include falsification of payroll and time records to hide the fact that employees were being underpaid.

Workers also accused Seventeen of creating hazardous and unhealthy workplace conditions, including unsanitary bathrooms lacking clean water or working plumbing. They further alleged that exits from the building were blocked or locked at night, making it impossible for night-shift worker to exit the building at night.

The FLSA was enacted specifically to protect against these abuses. The FLSA establishes minimum wage and requires overtime compensation be paid to workers who work more than 40 hours/week at a rate of 1 ½ times their standard rate of pay. Unfortunately, FLSA violations in the garment industry are all too common. The Department of Labor estimates that 50% of the registered garment contractors pay less minimum wage, nearly 2/3rds do not pay over-time and a third operate with serious health and safety violations.

With the downturn in the economy, the prevalence of “sweatshop” type conditions is increasing. Employers may try to avoid paying all compensation due, especially overtime, and pay less than minimum wage. Failure to do so may constitute a violation of the FLSA.