Sterling to Pay $1.3 Million in Back Wages


June 14, 2006

Sterling to Pay $1.3 Million in Back Wages

Sterling Jewelers Inc., the holding company for jewelry chains Kay Jewelers and Jared Jewelers, says it will pay $1.3 million in back overtime wages to 16,820 current and former employees, according to the Associated Press.

The payments average $77 per employee and cover the period between Nov. 2, 2003, and Feb. 25, 2006.

Sterling voluntarily disclosed to the U.S. Labor Department that it had violated overtime requirements set forth by the Fair Labor Standard Act. The company says it inaccurately credited workers for "premium overtime," which pays more than standard overtime and is often used for sales associates as incentives. Sterling says it also miscalcuated electronic time records so it did not fully credit employees for all hours worked.



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