The U.S. Department of Labor has initiated legal action against Coway USA Inc., a Los Angeles-based company, for allegedly failing to pay overtime wages to more than 180 employees. The suit was filed in the U.S. District Court for the Central District of California and claims violations of the Fair Labor Standards Act.
An investigation by the department's Wage and Hour Division revealed that Coway falsified employment records to conceal all hours worked by employees who serviced and maintained company products. The investigation also found that Coway did not account for or pay employees for time spent on calls with customers, loading and unloading vehicles, trips to pick up inventory, and mandatory training sessions. Additionally, it was discovered that Coway automatically deducted 30 minutes per day for lunch even though employees often worked through their lunch breaks.
The department further alleges that Coway used a flawed methodology to compute overtime pay, which reduced their liability and deprived employees of their rightful wages.
According to estimates from the division, Coway owes hundreds of thousands of dollars in unpaid overtime wages to over 180 employees. The department is seeking recovery of these unpaid wages as well as an equal amount in liquidated damages.
“Coway knowingly violated federal law by depriving workers of their hard-earned overtime pay and falsifying the hours they worked,” stated Regional Solicitor Marc Pilotin in San Francisco. “Coway’s violations have to be remedied and the company must be brought into compliance to ensure workers are fully and accurately compensated.”
“Our investigation found Coway, with brand ambassadors such as Korean pop band BTS, failed to pay more than 180 workers their overtime wages,” said Wage and Hour Division District Director Kimchi Bui in Los Angeles. “Employers can pay by piece-rate based on the number of units employees service, but they must pay overtime using the correct methodology and accounting for all hours worked.”
Coway USA Inc., based in Los Angeles, is a subsidiary of international household appliance manufacturer Coway Co. Ltd., which produces water purifiers, air purifiers, bidets, water softeners, and mattresses from South Korea.
The Wage and Hour Division’s Los Angeles District Office conducted the investigation while the regional Office of the Solicitor in San Francisco is handling litigation.
For those seeking more information about back wages or how to file a complaint online with the Wage and Hour Division can visit their website or call their toll-free helpline at 866-4US-WAGE (487-9243). Assistance is available in over 200 languages.
Additionally, a new Timesheet App is available for iOS and Android devices in English and Spanish to help ensure accurate tracking of hours worked.
