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Olympic Linen Files for Bankruptcy

Facing private lawsuits and Labor Department complaint

PHILADELPHIA — Central Laundry Inc., doing business as Olympic Linen, filed for bankruptcy in February, reports the Service Employees International Union (SEIU).

The Lansdowne, Pa.-based laundry filed its petition while it faces wage-and-hour lawsuits filed in a private action by workers and a separate U.S. Department of Labor complaint, according to SEIU.

Low-wage industrial workers filed a class action lawsuit in 2014 alleging wage theft, says SEIU. In the ongoing complaint, workers claim Olympic did not pay the minimum wage or overtime required by state law for all hours worked.

In addition to the workers’ lawsuit, the Labor Department also sued the company, claiming Olympic paid below the minimum wage and failed to pay the overtime premium, thereby violating the federal Fair Labor Standards Act, SEIU says.

In the bankruptcy filings, SEIU notes, the Labor Department is listed as a creditor owed $1.4 million. The bankruptcy petition does not list the amount claimed in the private action, Knolly Arnold et al v. Central Laundry Inc.

American Laundry News contacted Olympic Linen several times seeking comment but its representative was unavailable.

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