Lubbock-based Han Nara, which operates seven locations of Ashley Furniture, agreed to settle out-of-court with the federal Department of Labor.
The DOL filed court records Thursday afternoon saying that Han Nara agreed to pay more than $160,000 amid allegations that overtime pay was illegally withheld from employees between November 24, 2011 and January 2, 2016.
The DOL said Han Nara owes $80,610.87 in back wages and then the amount was doubled to act as liquidated damages.
The original lawsuit, filed Tuesday, said Han Nara illegally withheld overtime pay for those who worked in excess of 40 hours per week. A list of nearly 600 employees was included in the original lawsuit.
The money will be paid to the DOL and then DOL will contact employees to distribute the money. The out-of-court settlement still needed the signature of a federal judge. After that, Han Nara will be required to pay the DOL within 30 days.
Related Story: Government Sues Lubbock Company for Unpaid Employee Overtime