NEW YORK — The U.S. Department of Labor reached a settlement agreement Friday with a Northern Marianas Islands garment manufacturer a week after filing a lawsuit against the firm and its principal owner.

The DOL said Marianas Garment Manufacturing Inc. and its lead principal, Nicholas Fong, agreed to to pay its employees $1.6 million in back wages for overtime worked over a two-year period to settle the suit brought on Sept. 27. The company agreed to pay its 764 workers for unpaid hours worked during the period from April 7, 1997 to April 7, 1999.

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