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Kay Jewelry Company Pays Out $1.3M In Overtime Wages
AKRON, OHIO - Wednesday, March 10, 2010 (AP)
Akron - based Sterling Jewelers (parent Company of Kay
Jewelry) has agreed to pay nearly $1.3 million in overtime wages owed to current
and former employees of its retail stores operating at more than 1,100 locations
in 41 states.
The payments amount to an average of about $77 per employee. It resolves
violations of Fair Labor Standard Act overtime requirements. The company does
business under 14 retail names, including Kay Jewelers.
Sterling voluntarily disclosed the violations to the department. Sterling became
aware of pay issues through an internal review and then contacted the Labor
Department.
Sterling Jewelers Inc. will make payments that average $77 per employee to
resolve violations of Fair Labor Standard Act overtime requirements dating from
Nov. 2, 2003, to Feb. 25, 2006.
Sterling voluntarily disclosed the violations to the Labor Department. A
complaint and consent judgment were filed Monday with the U.S. District Court
for the Northern District of Ohio.
U.S. Secretary of Labor Elaine L. Chao said Tuesday the agreement also makes
certain that Sterling employees are paid properly in the future.
Sterling, a subsidiary of London-based Signet Group plc, became aware of pay
issues through an internal review and then contacted the department, Sterling
spokesman David Bouffard said.
Bouffard said the company inaccurately credited workers for what it considers
premium overtime, which is more than regular overtime and is paid to employees
who achieve certain sales incentives. The other issue involves time records kept
electronically in which some employees were not credited for all working time.
"In addition to making sure all Sterling team members are credited and
compensated for time worked, we are openly communicating with our associates so
that they are fully aware of the issues and our actions," he said. |