Department of Labor seeks Kentucky highway construction industry’s input to set accurate prevailing wage, fringe benefits for workers

News Release

Department of Labor seeks Kentucky highway construction industry’s input to set accurate prevailing wage, fringe benefits for workers

LOUISVILLE, KY – The U.S. Department of Labor encourages employers and others in Kentucky’s highway construction industry to complete a statewide prevailing wage rates survey to help its Wage and Hour Division establish accurate pay and fringe benefits for workers on federally funded and assisted construction projects.

The Davis-Bacon and Related Acts require the department to set the prevailing wage rates that reflect the actual wages and fringe benefits paid to construction workers in the county where the work occurs. 

The survey asks participants to provide information on wages employers paid on highway projects in Kentucky where construction occurred from Nov. 4, 2023, to Feb. 4, 2025. Not limited to federally funded construction projects, survey findings help the division in publishing accurate prevailing wage and fringe benefit rates in areas surveyed. Correct determinations also save contractors time spent requesting additional labor classifications. The department encourages all industry employers and stakeholders to participate.

The division strongly encourages online survey completion by Feb. 4, 2025, and will send notification letters to interested parties and contractors known to the agency with directions on how to access and complete the survey. To request a survey by mail or receive more information, contact the division’s Davis-Bacon Survey Center at (866) 236-2773 or email Davisbaconinfo@dol.gov

Learn more about the surveys

The Wage and Hour Division will provide two online briefings at no cost to employers and stakeholders to learn more about the survey process and obtain instructions for survey completion on Nov. 6 and Nov. 7, 2024. Register to attend an upcoming briefing.

Agency
Wage and Hour Division
Date
October 28, 2024
Release Number
24-2070-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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Department of Labor obtains judgment to recover $120K in wages, damages from Huddle House franchisee who withheld wages, made illegal deductions

News Release

Department of Labor obtains judgment to recover $120K in wages, damages from Huddle House franchisee who withheld wages, made illegal deductions

Gregg Hansen cited for similar violations in Oklahoma, other states

OKLAHOMA CITY  The U.S. Department of Labor has obtained a consent judgment and injunction to recover $120,000 in back wages and liquidated damages for 177 Oklahoma restaurant workers whose employer deducted time for lunch breaks not taken and failed to pay employees for all hours worked.

The Sept. 18, 2024, judgment in the U.S. District Court for the Western District of Oklahoma against Gregg Hansen - operator of Huddle House franchise locations in Ardmore, Edmond and Oklahoma City - follows an investigation by the department’s Wage and Hour Division that found the employer’s pay practices from October 2019 to February 2023 violated federal minimum wage and overtime provisions.

 “Gregg Hansen has deprived hundreds of low-wage workers at his Huddle House franchise locations of their full, hard-earned wages,” explained Wage and Hour Division District Director Michael Speer in Oklahoma City. “The Wage and Hour Division is determined to stop employers who repeatedly and willfully disregard federal labor regulations and hold them accountable for such blatant violations.”

The division previously cited the Chattanooga, Tennessee-based employer for similar violations at the same Oklahoma locations from 2016 to 2021, and at its locations in Missouri, Tennessee, and Texas. The willful and repeated nature of Hansen’s Fair Labor Standards Act violations prompted the department to pursue legal remedies. 

At one point owning nearly 20 locations in nine states, Gregg Hansen has been known as one of the largest Huddle House franchise operators in the nation. The Huddle House brand is owned by Ascent Hospitality Management in Sandy Springs, Georgia, a multi-brand restaurant company with nearly 600 Huddle House and Perkins Restaurant & Bakery locations in the U.S. and Canada. 

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 at 866-4US-WAGE (487-9243), regardless of where they are from. Calls are confidential and the division can speak with callers in more than 200 languages. 

Download the agency’s new Timesheet App for iOS and Android devices, now available in English and Spanish, to ensure hours and pay are accurate. 

Lea en Español 

Agency
Wage and Hour Division
Date
October 22, 2024
Release Number
24-2006-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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US Department of Labor recovers $317K in unpaid wages, damages from Southern California home care provider that denied overtime

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US Department of Labor recovers $317K in unpaid wages, damages from Southern California home care provider that denied overtime

PALS LLC assessed $10K in penalties for its willful labor violations

WHITTIER, CA – The U.S. Department of Labor has recovered $158,868 in back wages and an equal amount in liquidated damages from a Southern California residential care provider that refused to pay overtime to 45 workers, some of whom worked up to 70 hours per week.

An investigation by the department’s Wage and Hour Division found PALS LLC – a residential care provider for individuals with special needs and developmental disabilities – purposely failed to pay caregivers overtime rates when they worked more than 40 hours in a workweek. Investigators discovered some employees worked between 50 and 70 hours per week. Investigators also found the employer, which has locations in Indio and Whittier, failed to keep records of hours worked and rates of pay for each employee.

In addition to the recovery of the unpaid wages and liquidated damages, the division assessed the employer $10,829 in civil money penalties because of the willful nature of the violations.

“We urge all employers in this industry to review their pay practices and respect workers’ right to be paid all of their hard-earned wages,” said Wage and Hour Division Assistant District Director Gayane Aleksanian in West Covina, California. “The U.S. Department of Labor is committed to protecting care workers and will use all available enforcement tools to hold employers accountable for compliance.” 

Established in 1998, PALS provides adults with developmental disabilities with assistance to live at home independently. Its locations in Indio and Whittier, PALS serves clients of the Regional Center who reside in Los Angeles County and Riverside County. 

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 and how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from. The division can speak with callers in more than 200 languages.

Download the agency’s new Timesheet App for iOS and Android devices – available in English and Spanish – to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
October 17, 2024
Release Number
24-2147-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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Department of Labor to hold online seminars for current, prospective federal contractors on prevailing wage requirements in fiscal year 2025

News Release

Department of Labor to hold online seminars for current, prospective federal contractors on prevailing wage requirements in fiscal year 2025

Training offered on standards for federally funded construction, service contracts

WASHINGTON – The U.S. Department of Labor announced today that its Wage and Hour Division will offer online seminars for contractors, contracting agencies, unions, workers and other stakeholders on prevailing wage requirements in fiscal year 2025 for federally funded construction and service contracts.

In the division’s ongoing effort to increase awareness and improve compliance, the division will host two-day seminars with sessions on the Davis-Bacon ActService Contract Act and other related topics. Participants can choose among the sessions offered either of the two days. 

Seminars are scheduled on Nov. 13-14, 2024, and from March 18-19, June 25-26 and Sept. 24-25 in 2025. Learn more about related federal wage regulations and check for updates on the seminars.

“Prevailing wage laws empower workers by ensuring federally funded construction and service jobs are good jobs with fair wages and benefits,” said Wage and Hour Administrator Jessica Looman. “The Biden-Harris administration’s historic investments in our nation’s infrastructure have significantly increased the number of federal and federally funded projects, and the Wage and Hour Division is committed to ensuring stakeholders understand the labor standards protections critical to these investments.” 

Seminar attendance is free, but registration is required. Additional information, including links to the sessions for each date, will be provided to participants after registration. 

For more information about the Davis-Bacon Act, the Service Contract Act and other federal wage laws, please call the division’s toll-free helpline at 1-866-4US-WAGE (487-9243).

Agency
Wage and Hour Division
Date
October 15, 2024
Release Number
24-1983-NAT
Media Contact: Grant Vaught
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Judge orders Pennsylvania contractor to pay $85K in wages, benefits, overtime owed to 6 workers on federal projects in New York, New Jersey

News Release

Judge orders Pennsylvania contractor to pay $85K in wages, benefits, overtime owed to 6 workers on federal projects in New York, New Jersey

JRW Service Group also barred from obtaining federal contracts for 3 years

NEW YORK – An administrative law judge has ordered a Pennsylvania-based federal contractor to pay $85,284 in back wages for failing to pay prevailing wages, fringe benefits and overtime pay owed to workers employed on multiple federal construction projects, after an investigation and litigation by the U.S. Department of Labor.

A decision by the department’s Office of Administrative Law Judges found that JRW Service Group LLC and its owner, Jason Winters, violated the Davis-Bacon Act by classifying and paying six workers as laborers improperly when they did the work of carpenters, pipefitters and other trades at three worksites for the U.S. General Services Administration and the U.S. Coast Guard. Specifically, the work was performed at federal court buildings in Brooklyn and Central Islip and the U.S. Coast Guard training center in Cape May, New Jersey. The judge also found the company failed to pay workers fringe benefits, as required in federal contracts.

In addition, the judge found the employer did not pay employees the required overtime rates for hours over 40 in a workweek at all three worksites in violation of the Contract Work Hours and Safety Standards Act. The case was referred to the department’s Office of the Solicitor when JRW Service Group refused to pay the workers’ back wages. 

“Employers who fail to pay required prevailing wages and fringe benefits because they classify employees improperly cause financial harm to workers on government-funded projects,” said Wage and Hour Division District Director Jorge Alvarez in New York. “The Wage and Hour Division is committed to ensuring that these employees are made whole using all available enforcement tools.”

The order also debarred the company and its owner from working on future federal and federally funded construction projects for three years.

“This decision and debarment 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. 

The division’s New York City District Office conducted the investigation. Trial attorneys Susannah Kroeber, Susan Jacobs and Stacy Goldberg of the regional Office of the Solicitor in New York litigated the case.

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. Workers and employers can call the division’s toll-free helpline at 866-4US-WAGE (487-9243) confidentially with questions, regardless of immigration status. The division can speak with callers in more than 200 languages.

Download the agency’s Timesheet App for iOS and Android devices – available in English and Spanish – to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
October 15, 2024
Release Number
24-1978-NEW
Media Contact: James C. Lally
Phone Number
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US Department of Labor sues New York City coffee shops, operators for not paying overtime to employees working at multiple locations

News Release

US Department of Labor sues New York City coffee shops, operators for not paying overtime to employees working at multiple locations

Federal complaint seeks overtime back wages, liquidated damages for workers

Date of action:     September 20, 2024 

Type of action:     Complaint

Defendants:     White Noise Coffee I Corp., White Noise Coffee 2 Corp., Milk Under Café Inc., Su Hyung Kim a/k/a Vanesa Kim, and Han Flanagan. 

Allegations:      Following a U.S. Department of Labor Wage and Hour Division investigation, the department filed suit against a chain of New York City coffee shops operating in Manhattan and Brooklyn, and previously operating in Queens, as White Noise Coffee Co. and the individuals operating the chain. The complaint alleges the employers failed to pay overtime to employees, most notably by not combining hours worked across all locations when employees worked at multiple locations. Instead, workers were paid the same hourly rate even when they worked more than 40 hours in a workweek, in violation of the Fair Labor Standards Act. The employers also allegedly violated federal recordkeeping requirements by failing to keep and maintain accurate records.

The department’s suit, filed by its Office of the Solicitor, seeks back wages, liquidated damages, and injunctive relief to prevent ongoing and future violations.                                                                

Quotes:     “This suit makes clear all employers will be held accountable when they fail to pay employees their legally earned wages. The department will use every tool available to prevent employers from violating workers’ rights, including litigation,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York.

“Employers are legally responsible to pay employees for all hours worked and to maintain required records,” said Wage and Hour Division District Director Jorge Alvarez in New York. “Employers that know and understand the law can easily prevent violations. We encourage employers who may have questions to contact the Wage and Hour Division.”

Court:     U.S. District Court for the Eastern District of New York, Brooklyn, NY.

Docket Number:       24-cv-6645

Background:     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 can call the Wage and Hour Division confidentially with questions – regardless of immigration status – and the department can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s Timesheet App for iOS and Android devices – available in English and Spanish – to ensure hours and pay are accurate.

                                                                                                                                           

Agency
Wage and Hour Division
Date
October 9, 2024
Release Number
24-1833-NEW
Media Contact: James C. Lally
Phone Number
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US Department of Labor reminds employers of responsibility to pay clean-up, recovery workers proper wages in Helene’s aftermath

News Release

US Department of Labor reminds employers of responsibility to pay clean-up, recovery workers proper wages in Helene’s aftermath

Toolkit helps ensure employers comply with federal law amid disaster recovery

ATLANTA – As states across the Southeast address Hurricane Helene’s impacts, the U.S. Department of Labor reminds employers in disaster recovery and their workers that even when disaster strikes, worker protections apply.

The department’s Wage and Hour Division has resources available to help workers and employers understand their rights and responsibilities, including its natural disaster compliance assistance toolkit. The toolkit highlights how to avoid Fair Labor Standards Act violations, focusing on commonly found compliance failures when the department investigates employers engaged in disaster recovery, clean-up and rebuilding efforts.

Concerns highlighted in the toolkit include minimum and overtime wages, misclassification of employees as independent contractors, recordkeeping requirements, prevailing wages and the employment of children in violation of federal child labor laws. The complete toolkit, including many fact sheets available in English and Spanish, is available for download.

In the wake of natural disasters, employers must ensure they protect and maintain accurate records and pay workers when wages are due. Workers are particularly vulnerable during times of crisis, and employers that failed to comply with federal labor laws cause them and their families additional harm.

“Like the communities stricken by hurricanes and other disasters, workers are especially vulnerable after the fact. The U.S. Department of Labor responds quickly to protect workers and ensure they are paid all of their legally earned wages and benefits,” explained Wage and Hour Regional Administrator Juan Coria in Atlanta. “At the same time, we stand ready to provide employers with the information and guidance they need to stay in compliance.”

The division is committed to strong enforcement of workplace protections for disaster recovery workers nationwide, including the states affected by Hurricane Helene. 

Workers and employers with questions or concerns can call the agency’s toll-free helpline confidentially at 866-4US-WAGE (487-9243), regardless of where they are from. The division can speak with callers in more than 200 languages. 

Download the agency’s new Timesheet App for iOS and Android devices – available in English and Spanish –to ensure hours and pay are accurate. 

Agency
Wage and Hour Division
Date
October 3, 2024
Release Number
24-2077-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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Minimum wages in American Samoa increase by 40 cents per hour

News Release

Minimum wages in American Samoa increase by 40 cents per hour

Pay raises for workers in various industries under Fair Minimum Wage Act effective Sept. 30

PAGO PAGO, American Samoa – Workers on American Samoa employed in industries covered by the Fair Minimum Wage Act of 2007 will receive a 40-cent increase in their hourly wage beginning Sept. 30.

The Fair Labor Standards Act applies generally to employment in American Samoa as it does to employment in the U.S. The Fair Minimum Wage Act of 2007, as amended by Public Law 114-61, sets industry-specific minimum wage rates for American Samoa and provides that additional increases in those minimum wage rates of $0.40 per hour will occur every three years on Sept. 30, until all minimum wage rates equal the federal minimum wage. The last increase was Sept. 30, 2021.

American Samoa's minimum wage rates are set for particular industries, not for an employee's particular occupation. The rates are minimum rates, but an employer may choose to pay an employee at a rate higher than the industry-specific rate. The law also requires employers to display a poster showing the new minimum wage rates where employees can readily see it.

Effective Monday, Sept. 30, 2024, the federal minimum wages in American Samoa by industry are as follows:

Industry

Wage

Industry

Wage

Bottling, Brewing & Dairy Products

$6.29

Publishing

$6.73

Construction

$6.70

Retailing, Wholesaling & Warehousing

$6.20

Finance and Insurance

$7.09

Ship Maintenance

$6.61

Fish Canning, Processing,Can Manufacturing

$6.36

Government Employees Industry

$6.01

Garment Manufacturing

$5.78

Shipping & Transportation: Stevedoring, Lighterage, Maritime Activities

$7.19

Hotel

$6.10

Shipping & Transportation: Unloading of Fish

$7.02

Petroleum Marketing

$6.95

Shipping & Transportation: All other activities

$6.98

Printing

$6.60

Tour and Travel

$6.58

Private Hospitals and Educational Institutions

$6.43

Miscellaneous activities (includes domestic work)

$5.80

The law also covers the minimum wage for government employees which, under the schedule of incremental 40-cent increases, will be $6.01 per hour as of Sept. 30. However, the government of American Samoa previously established an hourly minimum wage of $7.25 for its employees.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the agency’s toll-free helpline confidentially at 866-4US-WAGE (487-9243). Learn more about the division, including a search tool to use if you think you may be owed back wages collected by the division. The department protects workers regardless of immigration status and can communicate with workers in more than 200 languages.

# # #

Media Contacts:

Michael Petersen, 415-625-2630, petersen.michael.w@dol.gov 

Jose Carnevali, 415-625-2631, carnevali.jose@dol.gov 

Release Number:  24-2071-SAN

Agency
Wage and Hour Division
Date
September 30, 2024
Release Number
24-2071-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor recovers $24K in fringe benefits, paid sick leave for 13 employees of Virginia rehabilitation, nursing care center

News Brief

US Department of Labor recovers $24K in fringe benefits, paid sick leave for 13 employees of Virginia rehabilitation, nursing care center

Employer:                                          

Hopewell Operator LLC, operating as Wonder City Rehabilitation and Nursing Center

Employer Address:                           

905 Cousins Ave., Hopewell, VA 23860

Investigation findings:                      

An investigation by the U.S. Department of Labor’s Wage and Hour Division determined the employer violated federal law when it failed to pay the health and welfare benefits of two employees, provide paid sick leave to 11 employees and maintain accurate records,  in violation of the McNamara-O’Hara Service Contract Act and Executive Order 13706, “Establishing Paid Sick Leave for Federal Contractors.”

Fringe benefits recovered:               

$22,923 in health and welfare benefits for two employees.

Paid sick leave recovered:                

$1,860 in paid sick leave for eight employees and 24.67 hours of paid sick leave restored for three employees.

Quote:                                               

“Prevailing wage laws require federal contractors and subcontractors to pay employees accurately and ensure they receive all health and welfare benefits,” said Wage and Hour Division District Director Roberto Melendez in Richmond, Virginia. “We encourage other employers in the nursing care and rehabilitation industry to evaluate their own pay practices to ensure they are in compliance with the law.”

Background:                                      

Wonder City Rehabilitation and Nursing Center provides adult day care to private citizens and U.S. military veterans and holds federal contracts with the U.S. Department of Veterans Affairs.

Learn more about the Wage and Hour Division’s numerous online resources for employers, including websites for frequently asked questions on the Davis-Bacon and Related Acts, the McNamara-O'Hara Service Contract Act, Executive Orders 13658, 13706, 14026and 14055, Government Contracts Compliance Assistance Toolkits, training and outreach, wage determination and conformances, and compliance assistance and enforcement processes. Employers and workers can also contact the Wage and Hour Division for assistance at its toll-free number, 1-866-4-US-WAGE.

Employers can contact CORPS - Community Outreach Resource Planning Specialists for compliance assistance and/or to schedule free outreach for federal employment laws. 

Workers can visit Workers Owed Wages, to determine if they think they may be owed back wages collected by the division. Workers and employers alike can help track their hours worked and pay by downloading the department’s Android and iOS Timesheet App for free in English or Spanish.  

Agency
Wage and Hour Division
Date
September 30, 2024
Release Number
24-2007
Media Contact: Leni Fortson
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US Department of Labor recovers $154K in back wages, damages from Georgia plastics manufacturer that shortchanged 743 workers of full overtime

News Release

US Department of Labor recovers $154K in back wages, damages from Georgia plastics manufacturer that shortchanged 743 workers of full overtime

Primex Plastics Corp. pays $128K in penalties for wage violations

ATLANTA – The U.S. Department of Labor has recovered $154,009 in back wages and liquidated damages from an international plastics manufacturer that willfully failed to include bonus payments when calculating overtime for 743 workers.

The wage recovery ends an exhaustive effort, highlighted by a March 1, 2024, Office of Administrative Law Judges consent decree in which Primex Plastics Corporation agreed to pay the back wages and damages identified in an investigation by the department’s Wage and Hour Division. The decree also required the employer to pay $128,589 in civil money penalties to the department for the willful nature of the violations.

“Employers must pay qualified workers overtime for hours over 40 in a workweek and include non-discretionary bonuses, such as those based on attendance or on quality and accuracy of work, when calculating overtime wages,” explained Wage and Hour Division District Director Steven Salazar in Atlanta. “Our investigation found Primex Plastics Corp. left bonuses out of their overtime calculations and, in addition to being liable for more than $150,000 in wages and damages, the company paid significant penalties for their violations.” 

The action follows an examination of company records from June 27, 2020, through June 26, 2022, by division investigators. This is not the first time Primex Plastics’ pay practices have violated federal overtime regulations. In 2002, the division recovered $3,246 for two salaried workers legally owed overtime. In 2010 and 2011, the company failed to include bonuses in overtime calculations for hourly employees and material handlers incorrectly categorized as exempt from overtime, resulting in payment of $203,960 in back wages to 991 workers. 

“Despite receiving information from our investigators about how to comply during multiple investigations, Primex still failed to pay employees their lawfully owed wages correctly,” added Salazar. “In cases like this one, where employers repeatedly violate workers’ rights, the department will pursue additional penalties to hold employers accountable.”

Workers and employers can call the Wage and Hour Division confidentially with questions and the department can speak with callers in more than 200 languages. For more 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, including bonuses under the Fair Labor Standards Act and a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s new timesheet app for Android and iPhone devices for free to track work hours and pay.

Agency
Wage and Hour Division
Date
September 30, 2024
Release Number
24-1711-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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