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Judge orders O.C. garment company to pay $887,000 to underpaid workers

December 14, 2010 |  6:57 pm

An Orange County garment manufacturer has been ordered to pay $887,000 to current and former workers for failing to pay the minimum wage and overtime, the U. S. Department of Labor announced Tuesday.

Westminster-based Laundry Room Clothing Inc. and its owner, Milton Kaneda, were ordered to pay the damages to 115 current and former employees who had been underpaid from Feb. 7, 2009, to March 31, 2010, the Labor Department said in a news release.

The Fair Labor Standards Act requires employers to pay workers at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay for hours worked beyond 40 per week.

U.S. District Judge A. Howard Matz issued the default judgment Dec. 1 after Kaneda failed to defend a lawsuit filed by the Labor Department in April.

The judge ordered the company to pay employees $381,000 in back wages and $506,000 in damages.

-- Stuart Pfeifer