The Department of Labor found a silk-screening contractor for numerous entertainment merchandise manufacturers violated the Fair Labor Standards Act (FLSA).
A Wage and Hour Division investigation concluded King Graphics in San Diego failed to pay workers overtime and one-half the required rate of pay for all hours worked over 40 in a workweek.
King Graphics claims to print approximately 30,000 items per day. The company makes merchandise for artists including Britney Spears, Rolling Stones, Lady Gaga, Ariana Grande and Willie Nelson.
Following a visit to King Graphics in September 2021, investigators requested the employer not ship “hot goods” made in violation of the FLSA. The employer then refrained from shipping a truckload of Britney Spears T-shirts.
The FLSA’s “hot goods” provision states the department can seek a court order to stop the interstate shipment of goods made in violation of the overtime, child labor or minimum wage provisions of the FLSA.
King Graphics paid $10,473 to lift the hold.
The contractor agreed to pay $296,914, which covered overtime pay and liquidated damages, to the affected 76 workers. It will also pay $10,473 in civil money penalties for willful violations.
The division also investigated manufacturers who received the distributed “hot goods,” an FLSA violation. The manufacturers cooperated with investigators.