TRENTON, July 7, 2009 – More than 500 employees and former employees of Raymour and Flanigan Furniture are receiving good news in the mail.

The New Jersey Department of Labor and Workforce Development is distributing more than $2 million in back pay collected from Raymour and Flanigan to the workers who earned overtime pay but were not properly compensated by the company.

In response to complaints by workers, an investigation by the Department’s Division of Wage and Hour Compliance determined that the company was improperly paying furniture delivery less than time-and-a-half their regular hourly wage rate for overtime work over 40 hours in a work week.

The Department of Labor and Workforce Development charged the company with failing to properly pay overtime wages and the case ultimately went before the Appellate Division of Superior Court.

Although Raymour and Flanigan argued that the delivery arm of the company was a separate trucking business eligible to pay a special, overtime rate that is only allowed for trucking companies, the Court ruled that the delivery workers were part of the retail business and that the workers were entitled to be paid time-and-a half of their regular wages for overtime hours worked.

New Jersey Labor Commissioner David J. Socolow said, “This case is a victory for the workers of Raymour and Flanigan and underscores Governor Corzine’s ongoing commitment to fair treatment of workers and fair competition among businesses.”

Raymour and Flanigan employees and former employees who worked more than 40 hours a week between March 13, 2004 and April 13, 2009 are receiving checks for the back wages.  Current or former Raymour and Flanigan employees who have not received their back pay and believe they may be entitled to compensation can contact the Department’s Office of Wage and Hour Compliance at (609) 777-4925. 

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