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.

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