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September 19, 2003
DOL Recovers Over $223,000 after 'Hot Goods' Notice
The U.S. Department of Labor's Wage and Hour Division announced that LaSalle Bank of New York City has agreed to fund the $150,985 payroll for a Tennessee employer's 232 hourly workers who did not receive their paychecks on Sept. 11, 2003. The bank has also agreed to pay salaried workers a total of $72,481 in wages due at the end of the month.

Chiquola Fabrics had announced on Sept. 10 that it was shutting down its Kingsport plant and then closed the facilitity the same day, the Associated Press reports.

On Thurs., Sept. 11, after being notified that workers had not received their paychecks, the Labor Department posted a "hot goods" notice at the plant. Under the "hot goods" provisions of the Fair Labor Standards Act (FLSA), no products produced by unpaid workers may be shipped until workers are paid.

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"The Department of Labor is committed to ensuring that all workers are paid for the work they've performed," says Secretary of Labor Elaine L. Chao. "The department's swift action and strong enforcement of the Fair Labor Standards Act has resulted in the recovery of over $150,000 for these hard working hourly workers and more than $72,000 for the company's salaried workers."


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