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Levi Strauss agrees to pay more than $1 million in overtime back wages to nearly 600 employees following US Labor Department investigation

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Overtime violations found at retail stores nationwide

SAN FRANCISCO — Levi Strauss & Co. has agreed to pay $1,011,413 in overtime back wages to 596 employees nationwide after the U.S. Department of Labor found that the company violated overtime and recordkeeping provisions of the federal Fair Labor Standards Act.

An investigation conducted by the San Francisco District Office of the Labor Department's Wage and Hour Division determined that the San Francisco-based company misclassified several groups of workers, including assistant store managers of newly acquired stores, as exempt from overtime. Although their counterparts at previously existing stores were exempt from overtime compensation, the newly hired employees were not.

"Misclassification of employees has serious and adverse consequences for employees, as well as for corporations," said Secretary of Labor Hilda L. Solis. "When violations of federal labor laws are discovered, this department will take appropriate action to ensure that workers receive the wages they deserve."

The company failed to record all hours employees worked in its payroll system. Instead, the misclassified assistant store managers were required to work off-the-clock during late night closings, early morning openings and staffing shortages. Various administrative employees working at the company's headquarters also were misclassified as exempt from FLSA coverage and found to be owed overtime back wages.

This investigation covered back wages for time worked over a two-year period. Levi Strauss has agreed to pay the back wages and committed to upgrade its time and attendance system, as well as maintain future compliance with the law. The applicable employees are now treated as non-exempt under the FLSA.

Founded in San Francisco in 1853, Levi Strauss was the first company to manufacture blue jeans. Today, the company operates 164 retail stores and employs more than 4,000 workers in the U.S., and its global operations span more than 100 countries.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers are required to keep accurate records of all hours worked by covered employees. The FLSA provides an exemption from both minimum wage and overtime pay for workers employed as bona fide executive, administrative, professional and outside sales employees. It also exempts certain computer employees. To qualify, employees generally must meet certain tests described in the act regarding their job duties.

For more information about the FLSA, call the Wage and Hour Division's San Francisco office at 415-625-7720 or its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at http://www.dol.gov/whd.

Editor's Note: A list indicating the city locations of Levi Strauss retail stores, offices and distribution centers in 30 states and the District of Columbia follows this news release.


Locations of Levi Strauss Stores throughout the United States

State

Cities Where Levi Strauss Stores, Offices
and Distribution Centers are Located

Arizona

Casa Grande, Phoenix, Tempe, Tucson

California

Alpine, Barstow, Beverly Hills, Cabazon, Camarillo, Canoga Park, Commerce, Folsom, Gilroy, Irvine, Lake Elsinore, Lancaster, Malibu, Milpitas, Napa, Ontario, Orange, Petaluma, Pismo Beach, Rancho Cucamonga, San Diego, San Francisco, Santa Barbara, Santa Clara, Santa Monica, San Ysidro, Thousand Oaks, Torrance, Tracy, Vacaville

Colorado

Boulder, Castle Rock, Denver, Lakewood, Loveland, Silverthorne

Delaware

Rehoboth Beach

District of Columbia

Washington

Florida

Augustine, Ellenton, Estro, Destin, Florida City, Miami, Orlando, Sunrise, Tampa, Wellington

Georgia

Dawsonville, Lawrenceville, Locust Grove

Hawaii

Honolulu, Waipahu

Illinois

Aurora, Chicago, Evanston, Gurnee, Schaumburg

Indiana

Edinburgh, Fremont

Louisiana

Baton Rogue, Gonzales

Maryland

Annapolis, Baltimore, Hagerstown, Hanover, Towson

Massachusetts

Boston, Dedham, Natick, Wrentham

Minnesota

Albertville, Bloomington, Medford, North Branch

Missouri

Branson, Hazelwood, Warrenton

Nevada

Jean, Las Vegas, Laughlin, Reno

New Hampshire

Tilton

New Jersey

Atlantic City, Elizabeth, Tinton Falls

New York

Central Valley, New York City, Niagara Falls, Riverhead, West Nyack

North Carolina

Concord, Mebane, Smithfield

Ohio

Aurora, Burbank, Jeffersonville, Monroe

Oregon

Lincoln City, Portland, Tigard, Troutdale, Woodburn

Pennsylvania

Gettysburg, Grove City, Lancaster, King of Prussia, Philadelphia, Pottstown

Rhode Island

Providence

South Carolina

Myrtle Beach, North Charleston

Tennessee

Sevierville

Texas

Allen, Austin, Canutilla, Conroe, Cypress, Grapevine, El Paso, Katy, Mercedes, San Marcos, Sugarland, Terrell

Utah

Park City, St. George

Virginia

McLean, Leesburg, Richmond, Williamsburg, Woodbridge

Washington

Auburn, Seattle, Tulalip

Wisconsin

Baraboo

 

Courtesy of the DOL

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