Levi Strauss Agrees to Pay Back Wages in California, US

San Francisco, CA A federal investigation that claims its underpinnings with a violation of California labor law has resulted in a large wage settlement against a heritage manufacturer of clothing. The Silicon Valley San Jose Business Journal noted on March 29 that Levi Strauss & Co owes no fewer than 596 employees scattered across the US more than $1 million in back wages.

The root issue of the violation is misclassification. But not everyone. The investigation found that the issue depended upon when an employee was hired by the company. To that point, it was found that employees working at previously existing stores were exempt from overtime. However, newly hired employees were not. It was found, according to an investigation by the US Department of Labor, that new hires were treated the same as existing employees.

They shouldn't have…

Assistant store managers were required to work off-clock during openings and closings early in the morning and late at night, respectively. Staff shortages were also occasions when assistant store managers were called upon to take up the slack, without fair compensation. As the investigation was first conducted by the San Francisco District Office of the Labor Department's Wage and Hour Division, the violations are rooted in California labor code.

Levi Strauss Co. is based in San Francisco.

"Misclassification of employees has serious and adverse consequences for employees, as well as for corporations," said Secretary of Labor Hilda L. Solis. "When violations of federal labor laws are discovered, this department will take appropriate action to ensure that workers receive the wages they deserve."

Even though the issue affects employees across the country, the investigation also uncovered misclassifications at Levi Strauss headquarters in California??"although it is was not clear why employees with more tenure were exempt from overtime, whereas more recent hires were not.

As a result of the California and labor law investigation, Levi Strauss agreed to pay back wages for a period covering two years to affected employees. The company also made a commitment to undertake an upgrade of its systems governing tracking time and attendance.

Levi Strauss has operations in Santa Clara, and thus is bound by California labor employment law.