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Wednesday, November 19, 2008

New Bedford factory targeted in raid to pay $850,000 in overtime

New Bedford factory targeted in raid to pay $850,000 in overtime
November 18, 2008
Brian R. Ballou
Boston Globe Staff

The owners of a New Bedford leather goods factory raided by immigration officials settled a class action lawsuit today, agreeing to pay current and former workers $850,000 in overtime.

The federal lawsuit was brought by five former and one current employee of Michael Bianco Inc., but it extends to 764 workers, said Audrey Richardson, senior attorney for Greater Boston Legal Services, which has represented many of the workers detained in the March 2007 raid.

The lawsuit charged that the company set up a fake corporation, Front Line Defense Inc., to avoid paying overtime wages. Employees said they were required to clock out at 5 p.m. after working a full day shift at Michael Bianco and then clock back in at 5:30 p.m. for Front Line. They received checks from both companies, to make it appear they had not exceeded 40 hours a week.

"Most of the time, the workers were doing the same work on the same machine as they did during the day,'' Richardson said.

Employees who clocked the most hours will receive up to $8,000 in back overtime pay.

“For a lot of people who were victims, this is going to help them and their families," said Digna Mendoza, a former employee at the plant, through a translator. "What we’re asking for is respect. For a lot of us, we come here to work and support our family.”

The six employees who brought the lawsuit will receive an additional $2,000 above the back pay they are entitled to, compensation for coalescing the group of workers, Richardson said.

Two weeks ago, owners of Michael Bianco Inc. agreed to settle a federal criminal case that included restitution for overtime owed to workers. That restitution amount, approximately $460,000, is included in today's settlement.

"There were weeks when I would even work 16 hours a day, but would not get any payment for overtime," said Else Hernandez, who earned $7.25 an hour for most of her four years working at the plant.

Hernandez said the lawsuit has served notice to other companies that may be engaging in similar practices.

"Now in New Bedford, a lot of employers from different companies are learning and being cautious, because a lot of them were doing the same," said Hernandez, through an interpreter. "Now they are paying better and paying overtime."

Dozens of US Immigration and Customs Enforcement agents stormed the Michael Bianco factory on March 6, 2007, detaining at least 361 illegal immigrants. In the days following, federal authorities drew sharp criticism for the raid and its aftermath. Some of the detainees complained of poor conditions at detention facilities and of coercion to sign deportation documents. Some relatives of those detained complained that the children of the detainees were left without their primary caregivers.

http://www.boston.com/news/local/breaking_news/2008/11/new_bedford_fac.html