Sterling to Pay $1.29 Million in Back Wages

Sterling Jewelers Inc. has agreed to pay $1,291,077 in back wages to resolve violations of the Fair Labor Standard Act (FLSA) overtime requirements, the Labor Department announced yesterday. Sterling agreed to pay the back wages to 16,820 current and former employees of its retail stores operating at 1,200 locations in 41 states. The back wage payments cover the period from November 2, 2003 to February 25, 2006.

"This administration is committed to ensuring that employers honor their obligation to pay their workers all the wages they have earned," said U.S. Secretary of Labor Elaine L. Chao. "In this case, we are recovering nearly $1.3 million dollars for almost 17,000 workers and making certain that they are properly compensated in the future."

Sterling, who voluntarily disclosed the violations to the labor department, failed to include incentive pay in the calculation of overtime and it failed to pay employees for all hours worked, which the employees had entered using the firm's electronic timekeeping system. Each of those violations contributed to workers being paid less than time and one-half their regular pay for hours worked over 40 in a single workweek as required by the FLSA.

The FLSA requires employers to pay covered employees at least the federal minimum wage for all hours worked and time and one- half their regular rate of pay for hours worked over 40 in a week. Employers must also maintain accurate time and payroll records.