HELENA — Sterling Jewelers Inc., which does business under 14 retail names including Kay Jewelers, has agreed to pay nearly $1.3 million in back wages for violations in the way it calculated overtime pay, the Labor Department announced Tuesday.
The back pay goes to 16,820 current and former employees of its 1,200 retail stores in 41 states, including Kay Jewelers stores in Great Falls, Billings and Missoula.
The company failed to include incentive pay in the calculation of overtime and did not pay employees for all hours worked. The back wage payments cover the period from Nov. 2, 2003, to Feb. 25, 2006.
Sterling voluntarily disclosed the violations to the Labor Department and worked with the agency to make sure the violations were resolved, the agency said.