WASHINGTON - The U.S. Department of Labor has recovered $596,443 for 31 workers who were denied their full wages and fringe benefits by a Maryland-based subcontractor involved in a kickback scheme during the construction of two affordable housing developments funded by the District of Columbia.

The department’s Wage and Hour Division investigated J. Solano HVAC LLC – an air conditioning, heating, and ventilation company based in Silver Spring, Maryland – and its owner, Jose Williams Solano, and found they violated the Davis-Bacon and Related Acts while working as a subcontractor on the Carl F. West Estates and Northwest One Phase 2 projects, both located in northwest Washington, D.C. 

The department determined J. Solano HVAC and Solano made verbal agreements with sheet metal workers and pipefitter mechanics that they would receive the full prevailing wage rate via check but then required workers to return any wages they received that exceeded $30 per hour. Additionally, the department found the employer wrongly classified some workers as lower-skilled laborers. In doing so, the employer did not pay the proper prevailing wage rates, including the basic hourly rate, holiday pay, and fringe benefits, in violation of the DBRA. 

The division debarred J. Solano HVAC LLC and its owner from bidding on federally funded construction projects for a period of three years because of the willful nature of the violations. 

“By uncovering this scheme, the department ensured that workers were paid fairly, received their full fringe benefits, and that competing contractors were not disadvantaged for appropriately bidding for work based on the required prevailing wage rates,” said Wage and Hour Division District Director Nicholas Fiorello, in Baltimore. “Employers that don’t abide by federal contract requirements may end up being debarred from future government contract work.” 

The Carl F. West Estates will create 179 affordable units reserved for seniors and grandfamilies. Northwest One Phase 2 is a six-story multifamily housing development. Both received funds from the District of Columbia. 

Learn more about the Wage and Hour Division and the DBRA. Employers and workers can call the division with questions and requests for compliance assistance through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s free Timesheet App for iOS and Android devices to track hours and pay. 

Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the Fair Labor Standards Act, as well as certain potential violations under the Family and Medical Leave Act.

RIVERSIDE, CA – A federal investigation has found the operator of a southern California towing company failed to pay overtime wages to 32 employees and recovered a total of $218,983 in back wages for them. 

The U.S. Department of Labor’s Wage and Hour Division determined Quality Roadside Service Inc., operating as Liberty Towing Inc., paid workers straight-time rates for hours over 40 in a workweek, in violation of Fair Labor Standards Act overtime laws. The Riverside-based employer also failed to maintain accurate records of employees, resulting in recordkeeping violations. 

“Employers must pay all earned wages, bottom line,” said Assistant District Director Skarleth Kozlo in West Covina, California. “Federal law safeguards that right and the Wage and Hour Division remains vigilant in their enforcement of those rights.”

The division also assessed $11,264 in civil money penalties for the willful nature of the violations. 

“The outcome in this case should serve to remind employers of the costly consequences they may face when shortchanging their employees,” Kozlo added. 

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Employers and workers can call the division confidentially with questions through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). 

Download the agency’s new Timesheet App, available for android and iPhone devices, to track hours and pay.

NEW ORLEANS – A U.S. Department of Labor investigation found a restaurant kept tips earned by workers, in violation of federal wage law. 

Investigators with the department’s Wage and Hour Division determined that the owners of the restaurant Chopstix Buffet kept all tips intended for their employees that were paid by credit card, in violation of federal tip pooling provisions. The investigation recovered $81,681 in tips for 12 workers. Additionally, one employee was paid only in tips and denied $1,435 in earned minimum wage. The department also assessed $1,188 in civil money penalties. 

“The law does not allow owners and managers to keep tips given by customers to service employees,” said Wage and Hour Division District Director Troy Mouton in New Orleans. “Tips belong to service workers. Employers that allow managers and owners to receive portions of those tips can face investigations or litigation. The Wage and Hour Division is available to provide compliance assistance to help employers understand their obligations to tipped employees.”

For information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division’s PAID program to help employers resolve potential wage violations, and see a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s free Timesheet App for Android and iOS devices to ensure hours and pay are accurate.

NEW JERSEY – An administrative law judge has ordered three New Jersey-based contractors to pay $429,846 in back wages and fringe benefits to 12 workers employed on multiple federal construction projects, after an investigation and litigation by the U.S. Department of Labor.

The department’s Wage and Hour Division found that Above All, Inc., formerly headquartered in Pequannock, violated the Davis-Bacon Act while working on new construction and renovation projects for the Department of Veterans Affairs Medical Centers in Lyons and East Orange. Elizabeth-based prime contractors Regiment Construction Corp. and Seawolf Construction Corp. subcontracted Above All to perform carpentry work on a total of three projects. 

The division found that Above All paid its carpenters less than the required prevailing wage – which ranged from $59.08 to $68.23 per hour, depending on the project and timeframe – on multiple projects. Instead, investigators discovered that Above All paid workers an average of $32 per hour.

Following the investigation and litigation, the department’s Office of Administrative Law Judges issued a decision and order finding Above All in violation of the Davis-Bacon Act for paying workers less than the required prevailing wage. In addition, the judge found Above All intentionally falsified records to hide underpayments. The decision and order found that, in addition to Above All, prime contractors Regiment and Seawolf are also liable for full payment of back wages and fringe benefits owed to workers on their respective projects as a result of Above All’s Davis-Bacon Act violations. 

“Employers who fail to pay required prevailing wages and fringe benefits cause financial harm to workers on government-funded projects,” said Wage and Hour Division District Director Paula Ruffin in Mountainside, New Jersey. 

“This decision and order should make clear that the U.S. Department of Labor will pursue all necessary legal actions to ensure that employers are held accountable when they violate federal prevailing wage laws,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York. 

Above All Inc., Regiment Construction Corp. and Seawolf Construction Corp. have filed petitions for review of the decision with the department’s Administrative Review Board.

Learn more about the Wage and Hour Division and the Davis-Bacon and Related Acts, including a search tool to use if you think you may be owed back wages collected by the division. Workers and employers can call the division toll-free at 866-4US-WAGE (487-9243) with questions or requests for compliance assistance.

Download the agency’s free Timesheet App for iOS and Android devices to ensure hours and pay are accurate.

LIVERMORE, CA – A federal court has ordered a Northern California-based roofing contractor to pay $1,943,685 in back wages and damages to 158 workers after a U.S. Department of Labor investigation found the employer failed to pay required overtime rates to workers.

The action by the U.S. District Court for the Northern District of California in San Francisco to approve the consent judgment follows an investigation by the department’s Wage and Hour Division that determined Northern California Nail Co. Inc. and its owners failed to pay 158 employees the required rate of time-and-one-half their regular rate of pay for all hours worked over 40 in a workweek, in violation of the Fair Labor Standards Act. 

The employer also failed to keep accurate time records, resulting in FLSA recordkeeping violations.

“Northern California Nail and its owners failed to pay overtime wages earned by hard-working roofers, in violation of federal law that protects their rights to be paid fully for their labor,” explained Wage and Hour Division Assistant District Director Ginny Gomez in Sacramento, California. “We are determined to recover wages owed to workers and will work diligently with the department’s legal arm, the Office of the Solicitor, to hold employers accountable for compliance.” 

The Wage and Hour Division also assessed $56,314 in penalties to resolve the willful violations. 

The FLSA requires most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half their regular rate of pay for all hours worked over 40 in a workweek.

Northern California Nail Co. Inc., headquartered in Livermore, performs roofing services in Arizona, California, Nevada, Oregon, and Washington. 

For information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division online, and see a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s free Timesheet App for Android and iPhone devices to ensure hours and pay are accurate.

DENVER – The U.S. Department of Labor recovered $107,300 in back wages from an Aurora-based Thai restaurant that denied 27 employees overtime pay and kept some of their tips, in violation of federal law. 

Investigators with the department’s Wage and Hour Division determined that owners of Kaimook Inc. – doing business as Pearl of Siam – violated the overtime provisions of the Fair Labor Standards Act when they improperly determined overtime on a pay-period basis and failed to pay workers overtime premiums based on each standalone 40-hour workweek. Division investigators also found the employer kept some of the workers’ tips.

The FLSA requires most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime at a rate of no less than time-and-one-half their regular rate of pay for all hours worked over 40 in a workweek. It also prohibits the retention of tips even when the employer does not rely on the tip credit to meet the minimum wage.

“No employee should be denied overtime pay or have employers take portions of their hard-earned tips,” said Wage and Hour Division District Director David Skinner in Denver. “The Fair Labor Standards Act mandates premium pay for overtime hours worked by non-exempt employees, and prohibits employers, managers, and supervisors from keeping any portion of other employees’ tips for themselves for any purpose.” 

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers and employers can call the division’s toll-free helpline for compliance assistance at 866-4US-WAGE (487-9243). 

Download the agency’s free Timesheet App for iOS and Android devices to ensure hours and pay are accurate. 

PASCO, WA – A federal court has ordered California-based Grimmway Enterprises Inc. to pay $427,456 in back wages and penalties after a U.S. Department of Labor investigation in south Washington found some workers were underpaid and others were subjected to unsafe housing conditions and transportation, in violation of federal law.

The court action follows an investigation by the department’s Wage and Hour Division that determined Grimmway Enterprises Inc. violated H-2A agricultural program requirements when the employer failed to pay the correct adverse effect wage rate to H-2A temporary workers and corresponding U.S. workers.

Investigators also found safety and health violations involving the housing and transportation of workers. Additionally, Grimmway did not tell employees the hours they were required to work, their job duties, or their eligibility for overtime pay.

The consent judgment, entered on June 30, 2025, in the U.S. District Court for the Eastern District of Washington, ordered Grimmway to pay $207,456 in back wages to workers as well as $220,000 in civil money penalties, and enjoins the employer from further H-2A program violations. Additionally, the employer was ordered to:

• Pay the correct adverse effect wage rate to all workers hired under the H-2A program.
• Provide employees with transportation and housing that meets all safety and health requirements and only allow authorized drivers to operate vehicles transporting workers.
• Provide a copy of the H-2A contract to all workers that includes detailed job descriptions and duties.
• Train managers, human resources personnel, payroll personnel, and supervisors who are directly responsible for administration and management of the H-2A program. 

“Agricultural workers are a vital part of maintaining the U.S.’s food supply and often work under physically grueling conditions. As one of the largest producers of carrots in the country, Grimmway Enterprises has a responsibility to ensure that all of their employees have a safe, sanitary working environment and are paid their rightfully earned wages,” said Wage and Hour Division District Director Thomas Silva in Seattle. “We urge employers in this industry to review their employment practices and ensure they are in full compliance with the laws. The Wage and Hour Division is committed to protecting farm workers, holding employers who violate wage laws accountable, and maintaining a level playing field for employers who follow the law.” 

Headquartered in Bakersfield, California, Grimmway Enterprises Inc. grows, packs, and ships various fruits and vegetables in California, Washington, and several southeastern states. 

The Wage and Hour Division offers multiple compliance assistance resources, including an agriculture compliance assistance toolkit, to provide employers the information they need to comply with the law. 

Employers and workers can contact the division at its toll-free number, 1-866-4-US-WAGE (487-9243).

Learn more about the Wage and Hour Division online, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s free Timesheet App for Android and iOS devices to ensure hours and pay are accurate.

DENVER – The U.S. Department of Labor recovered a total of $155,066 in back wages and fringe benefits for 19 employees who were underpaid for their work on a project funded by the U.S. Department of Housing and Urban Development. 

The department’s Wage and Hour Division found that AAA Fire Protection Inc. was contracted to install sprinklers at a newly constructed mixed-use apartment and retail complex in Denver. The company incorrectly classified 16 employees as apprentices and failed to provide fringe benefits and proper prevailing wages in violation of the Davis-Bacon and Related Acts. AAA Fire Protection also neglected to pay overtime premiums to employees working more than 40 hours in a workweek and failed to keep proper records, both violations of the Fair Labor Standards Act.

“An employer cannot simply classify workers as apprentices and pay them a lower rate. Any workers classified as apprentices must be part of a registered apprenticeship program,” explained Wage and Hour Division District Director David Skinner in Denver. “Contractors can contact us for compliance assistance to learn how to properly classify workers to meet their legal obligation to pay them the wages and benefits they are rightfully due.”

Located in Commerce City, AAA Fire Protection Inc. is a specialty contractor focusing on fire suppression. In addition to the $155,066 in back wages and fringe benefits, the employer agreed to comply with the Davis-Bacon Act and Davis-Bacon and Related Acts in all future contracts that are subject to the acts. 

The Wage and Hour Division offers free virtual prevailing wage seminars to provide training and outreach on topics such as the Davis-Bacon Act, the Service Contract Act, Executive Orders 13658 and 13706, wage determinations and conformances, and compliance assistance and enforcement processes.

Learn more about the Wage and Hour Division and the Davis-Bacon and Related Acts, including a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. For compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). 

Download the agency’s free Timesheet App for iOS and Android devices to ensure hours and pay are accurate. 

TWIN FALLS, ID – The U.S. Department of Labor has reached an agreement with a south-central Idaho grocery store requiring the employer to pay $250,833 in civil money penalties, $5,078 in back wages and damages, and take steps to ensure future compliance with federal child labor laws after investigators found child labor and wage violations at numerous locations. 

The settlement follows an investigation by the department’s Wage and Hour Division that determined Swensen’s Magic Markets LLC violated federal child labor laws by allowing six minor-aged workers to work in hazardous duties, such as cleaning meat slicers, meat tenderizers and grinders, loading trash compactors, and operating a rotisserie. Swensen’s Magic Markets also required youth to work outside of legally allowed hours and employed a 13-year-old child, which is under the legal age of employment in non-agricultural jobs.    

“Early work experience should not come at the expense of a child’s well-being and educational opportunities,” said Wage and Hour Division District Director Katherine Walum in Portland, Oregon. “Federal law protects young workers from the dangers involved in the operation and maintenance of commercial-grade equipment, and ensures they are not working late hours on school nights. Employers who are unclear about child labor laws should contact the U.S. Department of Labor to get their questions answered.”

In addition to the child labor violations, the division found that Swensen’s Magic Markets failed to combine all work hours from various locations, resulting in overtime violations for three workers who did not receive additional half-time pay for hours worked over 40 in a workweek. The division recovered $2,539 in back wages and an equal amount in damages for those workers. 

“Employers must abide by child labor laws and regulations,” added Walum. “Employers, parents, and school personnel should visit our YouthRules.gov website to learn how to protect young workers.” 

Swensen’s Magic Markets LLC has about 80 workers across its locations in Hagerman, Paul, and Twin Falls. 

The Department of Labor’s YouthRules site is a free, online guide that offers information about protections for young workers to youth, parents, employers and educators. Through the YouthRules initiative, the department and its partners promote developmental work experiences that help prepare young workers to enter the workforce. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employers to help employers comply with the law.

Learn more about the Wage and Hour Division and the Fair Labor Standards Act’s child labor provisions. Employers and workers can call the division with questions and requests for compliance assistance through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s free Timesheet App for iPhone and Android devices to track hours and pay. 

LAS VEGAS – The U.S. Department of Labor has recovered $824,276 in back wages and damages for 680 employees of a Las Vegas drywall contractor that denied overtime pay to piece-rate and hourly workers, in violation of federal law.

The recovery follows the department’s Wage and Hour Division investigation of Spectrum Construction LLC that found the employer failed to pay piece-rate and hourly workers – including painters, drywall hangers, and tapers – time-and-one-half their regular rate of pay for hours worked over 40 in a workweek as required by the Fair Labor Standards Act. The division found that Spectrum Construction paid piece rates to workers without any overtime premium for hours worked over 40 and “banked” the overtime hours of hourly painters, later compensating them with days off paid at straight time or not compensating them at all.

“This case highlights the Wage and Hour Division’s commitment to protecting construction workers’ rights to be paid overtime wages,” said Wage and Hour Division District Director Gene Ramos in Las Vegas. “By uncovering and addressing widespread overtime violations at Spectrum Construction, we are ensuring that hundreds of workers receive the wages they rightfully earned. Our enforcement efforts ensure fair competition in the construction industry and send a clear message that employers must comply with federal labor laws.”

The FLSA requires that an overtime premium be paid to all non-exempt employees for hours worked over 40, even if the employee is not paid on an hourly basis. Additionally, only public employers, such as state and local governments, are allowed to bank overtime hours, and are subject to additional rules.

The department also assessed Spectrum Construction $10,060 in civil money penalties for the willful nature of the violations.

Since 2011, Spectrum Construction LLC has operated as a contractor focusing on drywall, metal stud framing, acoustical installation, and painting for residential and commercial buildings in Nevada.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Employers and workers can call the division with questions and requests for compliance assistance through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s free Timesheet App for iPhone and Android devices to track hours and pay.