U.S. Department of Labor Launches Education, Enforcement Initiative To Boost Compliance with Prevailing Wage Laws on Federal Projects

News Release

U.S. Department of Labor Launches Education, Enforcement Initiative To Boost Compliance with Prevailing Wage Laws on Federal Projects

ATLANTA, GA – The U.S. Department of Labor’s Wage and Hour Division (WHD) has launched an education and enforcement initiative in eight Southeastern states to ensure construction companies that work on federal or federally assisted construction projects meet prevailing wage requirements of the Davis-Bacon Act (DBA) and the Davis-Bacon and Related Acts (DBRA).

WHD district offices in Alabama, Florida, Georgia, Kentucky, Mississippi, North and South Carolina, and Tennessee will engage federal contracting agencies, the Small Business Administration, and local chapters of construction associations to educate them about construction industry employers’ responsibilities, and how to prevent violations. WHD also will provide educational seminars directly to employers.

WHD investigations under these laws in these states during fiscal year 2020 resulted in employers paying $1,329,512 in back wages to 920 employees. Of the investigations conducted, 78 percent had DBRA violations, including investigations that led the Department to debar Wade Kincaid and KCS Construction of Columbia, Tennessee, and Southern Integrated Systems LLC and Jason Dinger, of Tampa, Florida, making them ineligible to bid on government contracts for three years.

“The Wage and Hour Division is committed to ensuring construction industry employers comply with the rules when they receive federal funds for work subject to the Davis Bacon and Related Acts,” said Wage and Hour Division Regional Administrator Juan Coria, in Atlanta, Georgia. “We have outreach staff available throughout the region to answer employers’ and contracting agencies’ questions about compliance. Our work in this area ensures that employees receive the wages they have legally earned, and levels the playing field for all contractors who do business with the government.”

Common violations disclosed during these investigations include employers’ failure to:

  • Classify and pay workers for the category of work they actually perform;
  • Pay the prevailing wage, including applicable fringe benefits, for all the hours employees work;
  • Keep accurate records;
  • Accurately track and pay workers the appropriate prevailing wages when they perform work in multiple job classifications; and
  • Post the DBRA poster and all applicable wage determinations, as the law requires.

The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers prevailing wage rates and fringe benefits as determined by the U.S. Secretary of Labor and as included in their contracts.

For more information about the DBRA and other laws enforced by the Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243) or visit the Division’s web site. The Division also offers a search tool that allows users to determine if they are owed back wages collected by the Division.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the paid sick leave and expanded family and medical leave provisions of the Families First Coronavirus Response Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
November 19, 2020
Release Number
20-1987-ATL
Media Contact: Eric R. Lucero
Phone Number
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Gloucester County, New Jersey, Farm Pays Employee Back Wages For Wrongly Denying Paid Sick Leave After Coronavirus Diagnosis

News Release

Gloucester County, New Jersey, Farm Pays Employee Back Wages For Wrongly Denying Paid Sick Leave After Coronavirus Diagnosis

NEWFIELD, NJ – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Buster Petronglo & Son Farm LLC – a Gloucester County, New Jersey, agricultural employer – has paid $1,377 in back wages for wrongly denying paid sick leave to an employee in quarantine after testing positive for the coronavirus.

Buster Petronglo & Son Farm LLC violated the Emergency Paid Sick Leave Act provisions of the Families First Coronavirus Response Act (FFCRA) by denying up to two weeks of paid sick leave at the employee’s full rate, which the worker was legally eligible for under the FFCRA.

The Families First Coronavirus Response Act qualifies employees for paid sick time to care for themselves and their families due to coronavirus-related reasons,” said Wage and Hour District Director Charlene Rachor, in Lawrenceville, New Jersey. “Employers must take all the steps necessary to comply with the FFCRA and should review their obligations under this new law to avoid similar violations.”

WHD encourages employers and employees to contact them for assistance to better understand the requirements under the FFCRA and use its educational online tools to avoid violations. WHD offers updated information on its website and through extensive outreach efforts to ensure that workers and employers have the information they need about the benefits and protections of this new law.

The FFCRA helps the U.S. combat and defeat the workplace effects of the coronavirus by giving tax credits to American businesses with fewer than 500 employees to provide employees with paid leave for reasons related to the coronavirus. Please visit WHD’s “Quick Benefits Tips” for information about how much leave workers may qualify to use, and the amounts employers must pay. The law enables employers to provide paid leave reimbursed by tax credits, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus. 

WHD provides additional information on common issues employers and employees face when responding to the coronavirus and its effects on wages and hours worked under the Fair Labor Standards Act and on job-protected leave under the Family and Medical Leave Act at https://www.dol.gov/agencies/whd/pandemic.

For more information about the laws enforced by WHD, call 866-4US-WAGE, or visit www.dol.gov/agencies/whd.

For further information about the coronavirus, please visit the Centers for Disease Control and Prevention.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

 

Agency
Wage and Hour Division
Date
November 16, 2020
Release Number
20-2018-NEW
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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Franklin, Tennessee, Restaurant Pays $179,878 in Back Wages After U.S. Department of Labor Investigation Uncovers Wage Violations

News Release

Franklin, Tennessee, Restaurant Pays $179,878 in Back Wages After U.S. Department of Labor Investigation Uncovers Wage Violations

FRANKLIN, TN After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Garcia’s Mexican Restaurant – based in Franklin, Tennessee – has paid $179,878 in back wages to 40 employees to resolve minimum wage violations of the Fair Labor Standards Act (FLSA).

WHD investigators found Garcia’s Mexican Restaurant violated the FLSA when the employer required servers to pay $7 to $10 per shift into a tip pool that the restaurant retained to pay the hourly rates of non-tipped workers. The FLSA does not allow employers to keep servers’ tips. WHD also found that the employer retained the credit card tips hosts earned on carryout and to-go orders, resulting in additional FLSA minimum wage violations. Garcia’s failure to record which of the servers paid into the tip pool, how much they provided and on when they did so also resulted in recordkeeping violations.

“The Wage and Hour Division is committed to ensuring that employees receive the wages they have earned, and that employers clearly understand their responsibilities,” said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. “The outcome of this investigation serves as a reminder to all employers to review their pay practices and to confirm that workers are being paid as the law prescribes. We will continue to work to level the playing field for employers who play by the rules.”

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 and confidential calls 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 that 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.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
November 12, 2020
Release Number
20-1918-ATL
Media Contact: Eric R. Lucero
Phone Number
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Palm Bay Electrical Contractor to Pay $19,642 in Back Wages After U.S. Department of Labor Finds Overtime Violations

News Release

Palm Bay Electrical Contractor to Pay $19,642 in Back Wages After U.S. Department of Labor Finds Overtime Violations

PALM BAY, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Cornelius Electrical Contractors Inc. – based in Palm Bay, Florida – will pay $19,642 in back wages to 13 employees after violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined that the electrical contractor failed to record and pay as work time the hours employees spent driving between work sites. That unpaid travel time resulted in overtime violations when workweeks exceeded 40 hours. Cornelius Electrical further violated FLSA overtime requirements when it failed to include incentive pay in the calculation of workers’ overtime rates, instead basing their time and one-half rates only on their hourly base rates. This exclusion resulted in the employer paying for overtime hours at rates lower than those required by law. Recordkeeping violations resulted from the employer’s failure to record travel time as hours worked.

“The U.S. Department of Labor continues to ensure that employees are paid all the wages they have legally earned for every hour they work. Travel time between job sites during the work day must be counted as work time,” said Wage and Hour Division District Director Wildalí De Jesús, in Orlando, Florida. “We encourage other employers to use this investigation as an opportunity to review their own pay practices, ensure they comply, and avoid violations like those in this case.”

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 or confidential calls to local WHD offices.

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). Employers that discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at www.dol.gov/agencies/whd.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
November 12, 2020
Release Number
20-1886-ATL
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Recovers $541,026 for Employees of Miami-Area Aviation Engine Repair Companies Following Missed Payrolls

News Release

U.S. Department of Labor Recovers $541,026 for Employees of Miami-Area Aviation Engine Repair Companies Following Missed Payrolls

MIAMI, FL After investigations by the U.S. Department of Labor’s Wage and Hour Division (WHD), two Miami, Florida-area aviation engine repair and service companies have paid $541,026 in wages to 134 employees after the investigations found minimum wage and overtime violations of the Fair Labor Standards Act (FLSA).

The WHD investigations found Turbine Engine Center Inc., located in Medley, Florida, and Miami NDT Engine Services LLC, located in Doral, Florida, violated the FLSA when they both missed payroll, resulting in minimum wage and overtime violations. To resolve the violations, Turbine Engine Center paid $299,625 in wages to 76 employees and Miami NDT Engine Services paid $241,401 in wages to 58 employees.

“Employers are obligated to comply with the requirements of the Fair Labor Standards Act and pay their employees all of the wages they have earned for all of the hours they have worked, no later than their regularly scheduled payday,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “The U.S. Department of Labor will continue working to level the playing field for employers who play by the rules, and to ensure workers get paid the wages they have legally earned.”

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 and confidential calls 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 that 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.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
November 10, 2020
Release Number
20-1914-ATL
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Announces up to $5 Million in Disaster Recovery Funding for Florida in Response to Hurricane Sally

News Release

U.S. Department of Labor Announces up to $5 Million in Disaster Recovery Funding for Florida in Response to Hurricane Sally

WASHINGTON, DC – The U.S. Department of Labor today announced a Disaster Recovery National Dislocated Worker Grant for up to $5,000,000, awarded to the Florida Department of Economic Opportunity, in response to Hurricane Sally. 

On Sept. 16, 2020, Hurricane Sally made landfall in the Florida Panhandle as a Category 2 hurricane. An initial award of $1,666,667 will create disaster-relief jobs to address debris cleanup and the delivery of humanitarian assistance to those affected by the storm. The project’s recovery efforts will cover all 13 counties included in the associated emergency declaration issued by the Federal Emergency Management Agency on Sept. 15, 2020 are Bay, Calhoun, Escambia, Franklin, Gadsden, Gulf, Holmes, Jackson, Liberty, Okaloosa, Santa Rosa, Walton and Washington. 

Supported by the Workforce Innovation and Opportunity Act of 2014, National Dislocated Worker Grants temporarily expand the service capacity of dislocated worker training and employment programs at the state and local levels by providing funding assistance in response to large, unexpected economic events that cause significant job losses.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Employment and Training Administration
Date
November 5, 2020
Release Number
20-236-NAT
Media Contact: Eric Holland
Phone Number
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Deloitte Services LP Agrees to Pay $275,000 to Resolve Alleged Wage Discrimination Found in Federal Contractor Compliance Review

News Release

Deloitte Services LP Agrees to Pay $275,000 to Resolve Alleged Wage Discrimination Found in Federal Contractor Compliance Review

HERMITAGE, TN After a routine compliance review by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), Deloitte Services LP will pay $275,000 in back pay and interest to 34 female employees to resolve allegations of wage discrimination at its worksite in Tennessee.

Deloitte Services LP provides internal support to Deloitte LLP, a nationwide provider of audit, consulting, tax and advisory services. The internal support for large-scale federal contracts includes market development, sales, security, finance, and accounting along with technology and administrative services.

During the review, OFCCP found that Deloitte Services LP discriminated when it paid female employees in technology services in Hermitage, Tennessee, less than their male counterparts. OFCCP also found that the federal contractor failed to adequately evaluate female placement rates into certain positions within the Market Development function at its Atlanta, Georgia, location and the Workplace Services function at its Hermitage, Tennessee, location.

“The U.S. Department of Labor is committed to combating pay discrimination and ensuring fair compensation of all employees,” said Office of Federal Contract Compliance Programs Deputy Director Patricia Davidson, in Washington, D.C. “Deloitte Services LP is working cooperatively with the Department to resolve these matters and to prevent similar issues from happening again.”

Deloitte Services LP will pay back pay and interest to 34 female employees in technology services, ensure that its compensation policies and pay procedures are free from discrimination, and provide training to all managers, supervisors and other company officials who oversee pay decisions in the Tennessee and Georgia locations. The contractor denies the allegations.

If you think you may be one of the applicants eligible for back pay from this settlement, or may know someone who is, please visit the OFCCP Class Member Locator for information about this, and other OFCCP settlements.

OFCCP enforces Executive Order 11246Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations, and may not retaliate against applicants or employees for engaging in protected activities. These laws also require that federal contractors provide equal employment opportunity through affirmative action. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Office of Federal Contract Compliance Programs
Date
November 5, 2020
Release Number
20-1780-ATL
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Issues Two Wage and Hour Opinion Letters

News Release

U.S. Department of Labor Issues Two Wage and Hour Opinion Letters

WASHINGTON, DC The U.S. Department of Labor today announced two opinion letters that address compliance issues related to the Fair Labor Standards Act (FLSA). An opinion letter is an official, written opinion by the Department’s Wage and Hour Division (WHD) on how a particular law applies in specific circumstances presented by the person or entity that requested the letter.

The opinion letters issued today are:

  • FLSA2020-15: Addressing the compensability of time that employees spend attending voluntary training programs in certain situations.
  • FLSA2020-16: Addressing compensability of employee travel time in certain situations involving construction sites located away from the employer’s principal place of business.

“The opinion letters issued today demonstrate the Wage and Hour Division’s commitment to providing clear guidance and compliance assistance to workers and employers,” said Wage and Hour Administrator Cheryl Stanton. “As the workforce continues to reopen, it remains important that we provide clarity to ensure workers are paid all the wages they have legally earned, and that employers compete on a level playing field.”

Those interested can search the Department’s website for existing opinion letters by keyword, year, topic, and other filters. The Department also encourages the public to submit requests for opinion letters to WHD to obtain an opinion or to determine whether existing guidance already addresses their questions. The Division exercises discretion in determining whether and how it will respond to each request.

With today’s release, the Wage and Hour Division has now issued 67 opinion letters since Jan. 20, 2017.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the FLSA. WHD also enforces the paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the FMLA, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
November 3, 2020
Release Number
20-2050-NAT
Media Contact: Megan Sweeney
Phone Number
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Court Orders New Hampshire Flooring Company to Pay $250,000 in Back Wages And Damages After U.S. Department of Labor Investigation, Litigation

News Release

Court Orders New Hampshire Flooring Company to Pay $250,000 in Back Wages And Damages After U.S. Department of Labor Investigation, Litigation

MANCHESTER, NH – The U.S. District Court for the District of New Hampshire has ordered C & C Flooring LLC and owner Christopher Coburn to pay 33 current and former employees a total of $240,000 in back wages and liquidated damages and $10,000 in punitive damages, to resolve violations of the overtime and anti-retaliation provisions of the Fair Labor Standards Act (FLSA). The defendants have also paid a civil money penalty of $13,688 for the willful nature of the violations.

The consent judgment and order follows a U.S. Department of Labor Wage and Hour Division (WHD) investigation and litigation by the Department’s Office of the Solicitor. WHD investigators found that the Manchester, New Hampshire, retailer and installer of business and residential flooring paid employees at straight-time rates, in unrecorded cash, when they worked more than 40 hours per work week instead of paying for overtime hours at time and one-half the employees’ regular rates of pay, as the law requires. The employer also “banked” some overtime hours, paying them out in later workweeks at straight-time rates. The defendants also failed to maintain accurate time records, and retaliated against employees by asking them to provide false information to WHD.

In addition to the back wages and damages, the judgment requires the defendants to:

  • Rehire any workers covered by this case before hiring others, unless they can substantiate that the individuals were terminated for cause;
  • Provide current and future employees with notice of their FLSA rights and WHD fact sheets;
  • Train supervisors and payroll personnel annually on compliance with the FLSA;
  • Supervise an annual FLSA compliance audit to be reviewed and approved by a lawyer or Certified Public Accountant with FLSA expertise; and
  • Agree to a writ of execution so the Department may petition the court unopposed to have the U.S. Marshals Service seize the defendants’ property if they fail to comply with the monetary terms of the judgment.

The judgment also prohibits the defendants from giving raises in compensation to Chris Coburn or his wife, who is a company employee, and further restrains the defendants from transferring or encumbering their assets and property in specific ways.

“Employers must understand their responsibility to pay overtime, keep accurate records and refrain from retaliation against workers who exercise their legal rights. In this case, the workers will receive their back pay and damages, including punitive damages, and the employer has also paid a significant monetary penalty for the willful violations,” said Wage and Hour Division District Director Daniel Cronin, in Manchester, New Hampshire. “We encourage employers to use the wide variety of compliance tools we offer to explain those requirements, and to contact us for guidance.”

“This case and its resolution send the strong message that the U.S. Department of Labor will take all necessary legal actions to ensure that workers receive the wages they have earned and are free from retaliation for exercising their rights,” said Regional Solicitor of Labor Maia Fisher in Boston, Massachusetts.

Employers that discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/agencies/whd including a search tool to use if you think you may be owed back wages collected by the Division.

The mission of WHD is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Scalia v. C & C Flooring, LLC d/b/a C & C Flooring, and Christopher Coburn.

Civil Action Number:  19-cv-00629-JL.

Agency
Wage and Hour Division
Date
October 28, 2020
Release Number
20-1762-BOS
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
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California Flooring Contractor to Pay $150,505 in Back Wages and Penalties For Overtime Violations Found by U.S. Department of Labor

News Release

California Flooring Contractor to Pay $150,505 in Back Wages and Penalties For Overtime Violations Found by U.S. Department of Labor

WEST COVINA, CA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Genesis Floor Covering Inc. – a flooring contractor in Santa Fe Springs, California – will pay $99,624 to 73 employees for violations of the Fair Labor Standards Act’s (FLSA) overtime requirements. The employer will also pay $50,881 in penalties assessed due to the willful nature of the violations.

The investigation found Genesis Floor Covering Inc. failed to pay employees for all of their overtime hours at time and a half their regular hourly rates. Instead, the employer paid for workers’ first 10 hours of overtime at time and a half, but paid for any additional overtime hours in cash, at straight time, off the books. The lack of accurate records reflecting the cash payments also resulted in FLSA recordkeeping violations.

“The U.S. Department of Labor is committed to ensuring that employers pay workers all the wages they have legally earned,” said Wage and Hour Assistant District Director Gayane Aleksanian in West Covina, California. “Our work also levels the playing field for employers that play by the rules. We encourage other employers to review their own pay practices to ensure they comply with the law, and avoid overtime violations like those found in this case.” 

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 and confidential calls 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.

The mission of WHD is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights. 

Agency
Wage and Hour Division
Date
October 19, 2020
Release Number
20-1670-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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