Countywide

The parent company of a department store with five locations in San Diego County has agreed to pay $53,000 in costs and penalties because some employees were forced to buy and wear clothing from the stores.

New York-based Lerner Stores Inc. agreed to the settlement with the San Diego city attorney’s office after the city said three store locations required its workers to buy and wear the store’s clothing.

The city said Lerner violated the state’s labor code.

Since many of its employees were making minimum wage, the demand that they buy clothing meant they were, in essence, being paid less than minimum wage, the city argued.

Lerner officials agreed to the settlement but did not admit liability or wrongdoing. They told city attorneys that they settled the suit to avoid costly litigation.

James Ferber, an attorney for Lerner who handled the negotiations, did not return a call placed to his Ohio law firm.

Lerner has five locations in San Diego County but three stores--in National City, Chula Vista and Mission Valley Center--were identified in the lawsuit.

The lawsuit was generated by several employee complaints to the state Labor Commission, which investigated and turned its findings over to the city’s consumer and environmental protection unit.