News Release

OPA News Release: [05/09/2002]
Contact Name: Sue Hensley
Phone Number: 202-693-4650

Perdue Farms Agrees to Change Pay Practices and Pay Millions in Back Wages to 25,000 Poultry Workers

WASHINGTON — The U.S. Department of Labor today announced the filing of one of the largest consent judgments in the history of its Wage and Hour Division.

Under the consent judgment with Perdue Farms, Inc., which is estimated to be worth over $10 million to Perdue poultry workers, the company agreed to change current and future pay practices at all of its domestic poultry processing facilities, and compensate more than 25,000 current and former employees for time spent “donning and doffing” work clothing and protective gear.

“This is a major victory for the workers, who will now get paid what they are entitled to and be compensated for health and safety precautions at their plants,” said Secretary of Labor Elaine L. Chao. “I am pleased that Perdue has stepped forward to do the right thing. Most poultry workers are immigrants who are paid less than $7.00 an hour. This agreement with Perdue is a major step in protecting these low-wage workers.”

The agreement with Perdue resolves a dispute over a poultry industry practice of not paying workers for time spent donning, doffing and sanitizing at the plant. Poultry processing workers are required to be ready to work, with work clothing and protective gear on, when the production line starts running, but are not paid for the time spent putting on the gear or cleaning up at the end of day. Perdue is the first poultry company to agree to pay workers for all hours worked, including time spent on these work-connected activities.

Tammy D. McCutchen, Administrator of the Wage and Hour Division, stated, “It’s important that Perdue has agreed to change its pay practices at all its plants across the country, to ensure future compliance with the Fair Labor Standards Act. We hope this settlement with Perdue will be a model for the industry.”

The consent judgment was filed in the U.S. District Court for the Middle District of Tennessee by the Labor Department’s Solicitor’s Office, and must be approved by that court.

The FLSA requires that covered employees be paid the minimum wage of $5.15 per hour for all hours worked and time and one-half their regular rate of pay for hours worked over 40 per week. The FLSA also requires employers to maintain accurate time and payroll records. For more information about the FLSA, call the Department of Labor's toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available on the Internet at www.dol.gov.

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