WWD.com/business-news/government-trade/joe-s-jeans-in-labor-settlement-3415313/
government-trade
government-trade

Joe’s Jeans to Pay $158K in Back Wages

Company's contractor did not pay its workers the appropriate minimum wage and overtime required by law.

WASHINGTON — Joe’s Jeans Inc. reached an agreement with the U.S. Labor Department to pay $158,952 in back wages to 110 workers at one of the company’s Los Angeles contractors.

This story first appeared in the January 11, 2011 issue of WWD.  Subscribe Today.

According to the Labor Department’s Wage & Hour Division, the contractor, Angel’s Finishing Inc., did not pay its workers the appropriate minimum wage and overtime required by law. Instead, Angel’s Finishing paid on a piece-rate basis and did not record weekend working hours, the agency said. The contractor worked solely for Joe’s Jeans, based in City of Commerce, Calif.

The Labor Department said the jeans made by the contractor for the brand were sold nationwide at stores including Bloomingdale’s, Dillard’s, Macy’s, Neiman Marcus, Nordstrom and Saks Fifth Avenue.

Joe’s Jeans agreed to pay the full amount of back wages owed by the contractor and to implement a plan promoting compliance with all of its contractors. The company also agreed to conduct periodic Fair Labor Standards Act monitoring of its contractors under the settlement.

In addition, the Wage & Hour Division levied a $41,400 fine against Angel’s Finishing and its owners.