U.S. Department of Labor, Nestle reach agreement on $5 million
in back pay to 6,000 workers

SAN FRANCISCO — Nestle Prepared Foods Co., a division of Nestle U.S.A., has paid nearly $5.1 million in back wages to more than 6,000 current and former workers following an investigation by the U.S. Department of Labor's Wage and Hour Division.

"The department during this administration has achieved record recoveries for workers who had not been paid all the wages they were owed," said Secretary of Labor Elaine L. Chao. "This case has resulted in over $5 million in back wages being paid to 6,000 workers."

Investigators found that production, maintenance and cleaning workers at manufacturing facilities in Chatsworth, Calif., Springville, Utah, and Jonesboro, Ark., were not paid for time spent putting on required equipment and clothing and removing it before and after their shifts, as required by the federal Fair Labor Standards Act (FLSA).

The company, headquartered in Glendale, Calif., cooperated with the investigation and when notified of the issue came into compliance voluntarily, including conducting reviews of its pay practices at facilities that were not investigated by the Labor Department. Nestle subsequently identified additional back wages due to workers at plants in Mt. Sterling, Ky., Solon, Ohio, and Gaffney, S.C. Reviews at additional facilities are still in progress. All the workers due back wages worked at facilities manufacturing products such as Hot Pockets, Lean Cuisine and Stouffers frozen foods. The workers will receive back wages for work performed between Dec. 15, 2006, and Dec. 15, 2008.

The FLSA requires that covered employees be paid for required time spent before and after shifts "donning and doffing," or putting on and removing certain uniforms, protective clothing and safety equipment, as well as for time spent between locker rooms and production areas once work time has begun. The FLSA also requires that covered employees be paid at least the federal minimum wage and receive overtime at one and one-half times their regular rates of pay for hours worked beyond 40 per week. The federal minimum wage for covered, nonexempt employees is $6.55 per hour. Effective July 24, 2009, the minimum wage will increase to $7.25 per hour. Employers must also maintain accurate time and payroll records.

For more information about the FLSA, call the Department of Labor's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov or by calling the division's Los Angeles District Office at 213-894-6375.

Read this news release in en Español.

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