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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 693-4650
Nabisco, Inc. will pay $5,047,143 in overtime pay to 3,130 of its retail
representatives as part of a settlement with the U.S. Department of Labor. The
settlement resolves allegations that Nabisco violated the overtime pay
provisions of the Fair Labor Standards Act.
The company, headquartered in Parsippany, N. J., was found to have
improperly paid retail representatives during the period of June 1997 to June
1999. Nabisco incorrectly classified its retail representatives as exempt from
the overtime provisions of the Fair Labor Standards Act. The Labor Department's
Wage and Hour Division discovered the violations during investigations of the
company's operations in Latham, N.Y., and Washington, Pa.
"This agreement affects workers in 43 states," Labor Secretary Alexis M.
Herman said. "It's a dramatic statement about how important it is for employers
to classify workers correctly and make sure they get the pay they are entitled
to."
"Nabisco cooperated in resolving these violations and acted quickly to
revise its policies to ensure that employees are properly classified and paid
in the future," said Bernard Anderson, assistant secretary of labor for
employment standards. "They also were quick to write the back pay checks most
of the workers have already received their money."
Employees classified as "retail representatives" had outside sales
duties, but spent most of their time delivering and displaying Nabisco products
in retail stores. While outside sales work does not require overtime pay,
delivering and stocking products is hourly work for which overtime must be paid
for hours over 40 in a work week. Nabisco has now divided the work into two
separate jobs: outside sales and merchandising.
The terms of the Sept. 13 settlement specify that all back wage payments
must be made on or before Jan. 15, 2000.
The northern New Jersey district office of the Wage and Hour Division is
located at 200 Sheffield Street, Room 102, Mountainside, N.J. Telephone: (973)
645-2279.
Archived News Release--Caution:
information may be out of date.
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