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Federal Court Hits California Firm With Big Labor Settlement

Laundry Room Clothing Inc. must pay $887K in unpaid wages and damages.

WASHINGTON — A federal judge awarded 115 workers from a Southern California apparel maker more than $887,000 in unpaid wages and damages, the U.S. Labor Department said Tuesday.

Laundry Room Clothing Inc., a Westminster, Calif.-based firm that the Labor Department said has manufactured clothing for Forever 21 and Ross Stores Inc., missed several payrolls between Feb. 7, 2009, and March 31, 2010. The Labor Department’s Wage and Hour Division investigated the company’s practices and monitored company payrolls before filing a lawsuit.

“Low-wage workers, such as those employed at garment shops throughout Southern California, are particularly vulnerable,” said Labor Secretary Hilda Solis. “The Department of Labor will not hesitate to hold employers accountable for paying their employees the wages they have earned.”

Laundry Room Clothing owner Milton Kaneda and principal Sharon Kaneda are responsible for paying the damages and unpaid wages to the workers following a default judgment signed by District Court Judge Howard Matz. The judgment awards the workers $380,824 in unpaid minimum wage and overtime compensation and $506,730 in damages to compensate for any loss or injury suffered.