Fox Bindery Inc. in Lansdale, a book-binding and direct-mail firm, has agreed to pay almost $600,000 in back wages and damages for failing to pay hundreds of Vietnamese and Hispanic workers $7.25 an hour and for failing to compensate those who worked more than 40 hours a week, the U.S. Labor Department said Thursday.
Fox hired the workers through two staffing agencies but “made no effort to determine if these employees were properly paid, despite receiving detailed invoices from the temporary staffing agencies,” the government said.
According to court documents, 566 current and former employees will be paid as part of the deal. Among those workers listed for back pay were 86 with the surname Nguyen and 26 with Huynh — both common Vietnamese names.
The consent agreement requires the company to pay $274,183 in back wages, an equal amount in liquidated damages and $50,000 in civil penalty. The Labor Department called the settlement a significant recovery.
“Fox Bindery is very troubled by the actions of our former temp agency. During the time in question, we fully paid the agency the rates which would have allowed them to appropriately compensate all involved,” Henry Fox, the company’s president said in a written statement Friday. “We are committed to ensuring we have implemented policies to guarantee that all our employees, temporary or otherwise, are fairly compensated.”
The Fox Bindery case began with an investigation into wage and hour violations. The Labor Department filed suit against Fox Bindery, Henry Fox, and the staffing services Sun Flower Services Inc. and Riverside Quality Services Inc. in February 2017. The consent agreement, filed with the federal court on Dec. 7, listed only Fox Bindery and Harry Fox.