News Release

Honolulu, Hawaii, Plumbing Services and Construction Contractor to Pay $195,798 for Overtime Violations Found By U.S. Department of Labor

HONOLULU, HI – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Phoenix Renovation Corp. – a plumbing service company based in Honolulu, Hawaii – and its construction subsidiary will collectively pay $134,623 to 93 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA). Additionally, WHD assessed the companies a total of $61,163 in civil penalties because of the willful nature of the violations.

WHD investigators found Phoenix Renovation Corp. – doing business as Sagewater and Sagebilt Inc. - failed to record and pay for all hours employees worked. This practice resulted in overtime violations when unpaid time caused workers to exceed 40 hours in a workweek, without being paid overtime.

The investigation determined that while employees typically started working between 7:30-7:45 a.m., the employers paid employees beginning at 8 a.m. When employees asked why they would not be paid for work prior to 8 a.m., project managers told them they would not approve timesheets if employees included pre-shift hours worked. Time worked prior to their scheduled shifts included activities such as loading tools and equipment, and attending meetings and briefings to plan the day’s activities.

“Employees must be paid for all of the time that they work, not just for their scheduled time,” said Wage and Hour District Director Terence Trotter, in Honolulu, Hawaii. “That includes any time they work before or after their scheduled shifts. We urge all employers to use the tools we offer to help them avoid violations and understand their responsibilities.”

Phoenix Renovation Corp. is a nationwide plumbing services company based in Alexandria, Virginia.

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

 For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/agencies/whd.

Agency
Wage and Hour Division
Date
January 7, 2020
Release Number
19-944-SAN
Contact: Leo Kay
Phone Number
Contact: Jose Carnevali
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