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New Era Cap Co. has agreed to pay 596 employees a total of $124,509 in back
wages following an investigation by the U.S. Department of Labor's Wage and
Hour Division.
The company is the sole licensed manufacturer of the official baseball caps worn by Major League
Baseball players and has facilities in Buffalo and Derby, New York.
Investigators say they found that piecework employees were not properly compensated
for daily preparation activities and that the employer had failed to round time
cards accurately.
"New Era Cap cooperated fully with us and conducted a self audit at their
Derby location, where they also found employees were due back wages," says
Michael Fitzgerald, assistant district director for the department's Wage and
Hour Division office in Buffalo.
As a result, 427 employees at the Buffalo plant will receive $106,110 in back
wages, while 169 employees at the Derby plant will receive $18,399 in overtime
back wages for violations of the overtime provisions of the federal Fair Labor
Standards Act (FLSA).
The FLSA requires that covered employees be paid the minimum wage of $5.15
per hour, time and one-half their regular rate of pay for hours worked over
40 per week, and that accurate records be maintained of employees' wages, hours,
and other conditions of employment.