In a landmark ruling for immigrant workers in the United States, the U.S. Department of Labor has secured $4.8 million in back wages and damages for 476 employees of Los Angeles-based Fu Qian Chen Lu, Bruce Shu Hua Lok, and other poultry processing workers. The case is one of the largest recoveries of back wages for low-wage workers in California history.
The Department of Labor found that the poultry processors had failed to pay $1 million in overtime and had improperly classified many workers as independent contractors, avoiding an additional $171,919 in back wages. The misclassification allowed the companies to evade providing benefits and paying into social security, while also preventing employees from organizing or bargaining collectively.
Lu and his companies have agreed to pay the back wages and damages to their employees at various locations including Diamond Green Diesel, Diamond Pet Foods, Foster Farms, Mars Pet Care, Perfection Pet Foods, Superior Food; several Nevada-based businesses including Caesar’s Palace, The Mirage Hotel and Casino and The Orleans Hotel in Las Vegas; as well as Casablanca Casino and Virgin River Hotel and Casino in Mesquite.
The settlement was reached on April 30th 2024 after an investigation by the Wage and Hour Division (WHD) of the U.S. Department of Labor revealed numerous violations of federal labor laws — particularly those related to minimum wage, overtime pay, recordkeeping requirements — affecting hundreds of workers across multiple facilities.
“Whether it’s a worker who relies on every dollar they earn or a business trying to compete on a level playing field, wage theft hurts everyone,” said Seema Nanda, Deputy Secretary of Labor. “This settlement sends a clear message that we will use every tool at our disposal to ensure that employers pay their workers what they are legally owed.”
According to the settlement agreement reached in January 2024 by WHD and approved by a U.S District Court Judge in Los Angeles, the defendants will pay back wages and damages to workers who were denied proper overtime compensation, were not paid for all hours worked, and were not provided with accurate wage statements as required by law. The settlement also requires the defendants to hire an independent monitor to ensure future compliance with federal labor laws.
“The Wage and Hour Division is committed to ensuring that workers are paid what they have legally earned,” said Jessica Looman, Acting Administrator of WHD. “When employers fail to pay their employees all of their hard-earned wages, everyone loses — businesses face unfair competition, taxpayers bear additional burdens, and workers may find it difficult or impossible to afford basic necessities. In this case, WHD’s enforcement efforts have resulted in significant recovery for hundreds of workers who were denied their rightful wages.”
In addition to the monetary penalties imposed on Lu and his companies for their labor law violations, the U.S. District Court in Los Angeles has issued a permanent injunction prohibiting them from future violations of the Fair Labor Standards Act (FLSA). Lu and his companies are also prohibited from retaliating against any current or former employees who cooperated with the investigation or exercised their rights under FLSA.
Furthermore, Lu and his companies have agreed to provide training on FLSA requirements to all managerial staff and to post notices informing employees about their rights under FLSA at all work sites.
The Labor Department's investigation revealed that several other California-based poultry processors - A1 Meat Solutions Inc., Lotus Plus Inc., Lotus Poultry Inc., Farmers Process Inc., Durfee Poultry Inc., L & Y Food Inc., JRC Culinary Group Inc., Moon Poultry Inc. - had similar wage theft issues.
The Labor Department is committed to ensuring that low-wage workers are paid fairly for their work and that employers who exploit vulnerable workers are held accountable. As part of its efforts to enforce federal labor laws, the Department offers a variety of resources to educate workers about their rights and employers about their responsibilities.
In November 2023, the Department secured a $3.8 million settlement for back wages and damages from another California-based poultry processor, following an investigation that found more than 200 workers were not paid properly.
The Department encourages anyone who believes they may be owed back wages or who has questions about federal wage and hour laws to call its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Department’s website in English and Spanish.
