Home » NEWS » Economic Development » Sardis workers to share in $1.4 million backpay ruling

Sardis workers to share in $1.4 million backpay ruling

Employees at United Plastics manufacturing plants in Sardis, Miss., and Leominster, Mass., will receive $1.4 million in back wages and “liquidated damages” as part of a consent judgment and order obtained in federal court by the U.S. Department of Labor.

More than half, 298, of the total of 566 workers work at the Sardis plant.

An investigation by the department found that the Leominster-based manufacturer and ASI Staffing Group Corp., which supplied contract labor to United Plastics  systematically underpaid employees at both plants over approximately a three-year period by denying them the overtime pay they were entitled to under the Fair Labor Standards Act.

The investigation found that to avoid paying proper overtime, ASI Group developed a scheme under which they created additional company names. When employees worked more than 40 hours in a week, the overtime hours were recorded under a separate company name, and some or all of their overtime hours were paid at straight time rates. These contract employees worked as machine operators, maintenance workers, molding technicians, color mixers and quality control workers, often more than 48 hours per week.

“Employers who use staffing agencies as a cover for short-changing workers of their hard-earned wages are breaking the law, plain and simple,” said Mark Watson, Jr. the Wage and Hour Division’s regional administrator.


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About MBJ Staff

One comment

  1. Vellderico Butler

    call me. (662)487-0430

Leave a Reply