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January 13, 2011
Joe’s Jeans Agrees to Pay $158,952 in Back Wages

Joe’s Jeans has agreed to pay $158,952 in back wages to 110 garment workers. The workers were employed at one of the company’s sewing contractors. Joe’s Jeans has also agreed to a plan promoting compliance by all its contractors.

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The Department of Labor’s Wage and Hour Division (WHD) found that a Joe’s Jeans contractor, Angel’s Finishing Inc., violated the Fair Labor Standards Act (FLSA) by failing to pay 110 garment workers minimum wage and overtime. The contractor worked exclusively for Joe's Jeans.

Joe's Jeans has paid the full amount of back wages for a two-year period. The WHD also assessed Angel's Finishing and its owners, $41,140 in civil money penalties for willfully violating the law by falsifying employees' time records.

In addition to paying back wages, Joe’s Jeans has agreed to a plan promoting compliance by all its contractors. The company will conduct periodic monitoring of its contractors for FLSA compliance. The plan also calls for various education and outreach efforts, and a discussion about the financial terms of the contracts to ensure the contractors' financial ability to comply.



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