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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Download Now"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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