Wichita, Kansas, Best Western Pays 13 Employees Back Wages After Wrongly Denying Paid Sick Leave for Required Coronavirus Quarantine

News Release

Wichita, Kansas, Best Western Pays 13 Employees Back Wages After Wrongly Denying Paid Sick Leave for Required Coronavirus Quarantine

WICHITA, KS After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Best Western Plus Wichita Hotel – based in Wichita, Kansas – has paid $5,693 in back wages for wrongly denying paid sick leave to 13 employees required to quarantine after testing positive for the coronavirus.

WHD investigators found Best Western Plus Wichita violated the Emergency Paid Sick Leave Act provisions of the Families First Coronavirus Response Act (FFCRA) when it denied the employees paid time away from work for which they were eligible. The employer has also agreed to future compliance with 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. This provision aids in limiting the spread of the coronavirus and protects employees and the public,” said Wage and Hour District Director Reed Trone, in Kansas City, Kansas. “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 call the division directly 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 COVID-19. 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.

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Agency
Wage and Hour Division
Date
October 19, 2020
Release Number
20-1881-KAN
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Don Pancho Restaurant Chain to Pay $563,350 in Back Wages After U.S. Department of Labor Finds Wage, Child Labor Violations

News Release

Don Pancho Restaurant Chain to Pay $563,350 in Back Wages After U.S. Department of Labor Finds Wage, Child Labor Violations

CLARKSVILLE, TN After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Don Pancho Mexican Restaurant will pay $563,350 in back wages to 120 employees after an investigation found minimum wage, overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA) at three Tennessee locations in Mount Juliet, Ashland City and Jackson. The Department also assessed the restaurant a $683 civil penalty for violating the child labor provisions of the FLSA.

WHD investigators determined Don Pancho Mexican Restaurant – headquartered in Clarksville, Tennessee – kept a percentage of servers’ tips to offset the restaurant’s expenses, in violation of minimum wage requirements. The law prevents employers from keeping workers’ tips. Don Pancho also failed to record all of the hours employees worked, resulting in the employer’s failure to pay for those hours, triggering additional violations.

Don Pancho Mexican Restaurant also paid some kitchen workers flat salaries, regardless of the number of hours that they worked. This practice resulted in violations when those employees worked more than 40 hours in a workweek, but the employer failed to pay them overtime. Similar violations occurred for employees paid flat daily rates regardless of the number of hours they worked. WHD also found the employer failed to maintain records of cash payments made to employees, resulting in a recordkeeping violation.

The investigation also found that Don Pancho Mexican Restaurant violated child labor requirements by employing a 15-year-old minor to work outside of the hours allowed by law for that age group. WHD investigators determined the employer allowed the minor to work more than 18 hours during a school week, more than 40 hours in a week while school was not in session, more than three hours on a school day, more than eight hours on a non-school day, and later than 7:00 p.m.

“Employers must pay their workers all the wages they have legally earned. We encourage them to contact the Wage and Hour Division with questions about how to pay a tipped employee, or any other wage requirements, so that they fully understand their responsibilities,” said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. “This investigation’s outcome reminds all employers to review their pay practices to ensure they are paying their workers as the law requires and demonstrates that the U.S. Department of Labor is committed to leveling the playing field for employers that 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
October 9, 2020
Release Number
20-1823-ATL
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor and the University of Delaware Enter Agreement to Resolve Alleged Hiring Discrimination

News Release

U.S. Department of Labor and the University of Delaware Enter Agreement to Resolve Alleged Hiring Discrimination

NEWARK, DE – The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has entered into an early resolution conciliation agreement with the University of Delaware in Newark, to resolve allegations of systemic hiring discrimination. The university has agreed to pay $100,000 in back pay, interest and benefits to the affected male class members who applied and were not hired for custodial technician positions.

The preliminary findings of OFCCP’s routine compliance evaluation show that from July 1, 2017 through June 30, 2018, the university discriminated against 210 male applicants for custodial technician positions in violation of Executive Order 11246, which prohibits gender-based discrimination in hiring by federal contractors.

While not admitting liability, the University of Delaware agreed to an early resolution conciliation agreement and to enhance future compliance proactively. The University of Delaware will also evaluate its selection procedures, and conduct an in-depth review of its practices to ensure there are no discriminatory selection practices.

“The Office of Federal Contract Compliance Programs’ Early Resolution Procedures help ensure prompter and broader relief for America’s workforce by allowing contractors facing a potential violation to proactively correct such violations and ensure future enterprise-wide compliance,” said Office of Federal Contract Compliance Programs Director Craig E. Leen.

“Federal contractors are legally obligated to monitor their hiring processes and ensure applicants are not rejected due to unlawful practices,” said Office of Federal Contract Compliance Programs Regional Director Michele Hodge, in Philadelphia, Pennsylvania.

In 2020, the University of Delaware secured federal contracts for products and services from the U.S. Department of Agriculture, National Institutes of Health, Department of the Army, National Oceanic and Atmospheric Administration, National Aeronautics and Space Administration, and Federal Railroad Administration.

In November 2018, OFCCP issued a directive establishing Early Resolution Procedures, launching an initiative to promote early and efficient resolution of supply and service compliance evaluations. These procedures allow OFCCP and contractors with multiple establishments to implement corporate-wide compliance cooperatively with OFCCP’s regulatory requirements, and resolve identified issues efficiently. In turn, contractors are exempt from future OFCCP evaluations for five years.

OFCCP enforces Executive Order 11246, Section 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 based on 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 that 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 http://www.dol.gov/ofccp/.

OFCCP launched the Class Member Locator to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and who may be entitled to a portion of monetary relief and/or consideration for job placement. If you think you may be a class member who applied between (2017) and (2018), the period of the investigation, please visit our website at http://www.dol.gov/ofccp/CML/index.htm, where you can also find information about other recent OFCCP settlements.

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
October 7, 2020
Release Number
20-1875
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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Healthcare Staffing Company Pays More Than $3 Million in Back Wages After Missing Payroll for Employees Conducting Coronavirus Testing

News Release

Healthcare Staffing Company Pays More Than $3 Million in Back Wages After Missing Payroll for Employees Conducting Coronavirus Testing

OVERLAND PARK, KS Favorite Healthcare Staffing Inc. – based in Overland Park, Kansas – has paid $3,068,859 in back wages to 1,677 contract employees hired to conduct coronavirus testing in Orlando, Florida, under terms of an agreement with the U.S. Department of Labor’s Wage and Hour Division (WHD).

WHD investigators determined Favorite Healthcare Staffing Inc. missed several payroll payments to workers in June and July of 2020 resulting in violations of the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements.

“The Wage and Hour Division works to ensure employers in all industries comply with federal law so that every employee receives the wages they have rightfully earned,” said Wage and Hour District Director Reed Trone in Kansas City, Kansas. “Employers must understand their responsibility to accurately and timely pay employees. We encourage employers to use the wide variety of compliance tools we offer to explain those requirements, and to contact us for guidance.”

Favorite Healthcare Staffing Inc. provides placement of healthcare professionals for allied health, contract, travel and permanent placement opportunities nationwide.

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 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 5, 2020
Release Number
20-1827-KAN
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Tennessee Restaurant Chain To Pay $188,728 in Back Wages After U.S. Department of Labor Uncovers Minimum Wage Violations

News Release

Tennessee Restaurant Chain To Pay $188,728 in Back Wages After U.S. Department of Labor Uncovers Minimum Wage Violations

KINGSPORT, TN After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Cypriana Inc. – operating as Mad Greek International Café – will pay $188,728 in back wages to 65 employees. The investigation found minimum wage and recordkeeping violations of the Fair Labor Standards Act (FLSA) at two Tennessee locations in Kingsport and Johnson City.

The WHD investigation determined Cypriana retained a percentage of servers’ tips illegally to use for business expenses and to pay the hourly wages of hosts and bussers. The FLSA does not allow employers to keep servers’ tips. Under certain circumstances, the law does allow employers of tipped workers to take credit for tips the employees receive toward the employer’s obligation to pay those workers the federal minimum wage of $7.25 per hour. The violation found in this case disallows Cypriana’s ability to take that credit, resulting in the employer owing the full federal minimum wage to servers. In addition, WHD found that the employer failed to maintain the records showing the dates of birth for four minor employees, an FLSA recordkeeping violation.

“We strongly encourage employers to contact the Wage and Hour Division with questions regarding tip credit rules or any other wage requirements so they can meet their legal obligations,” said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. “This investigation’s outcome reminds all employers to review their pay practices to ensure they are paying their workers as the law requires, and shows that the U.S. Department of Labor remains committed to leveling 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
October 5, 2020
Release Number
20-1771-ATL
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Reaches Conciliation Agreement With Law Firm to Resolve Alleged Pay Discrimination

News Release

U.S. Department of Labor Reaches Conciliation Agreement With Law Firm to Resolve Alleged Pay Discrimination

PROVIDENCE, RI – After a routine compliance review by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), Locke Lord LLP – a federal contractor formerly known as Edwards Wildman – voluntarily entered into a conciliation agreement to resolve allegations of pay discrimination at its Providence, Rhode Island, office.  

In January 2015, Locke Lord LLP acquired Edwards Wildman. In fiscal years 2016 through 2020, Locke Lord LLP received payments totaling $4,915,638 due to federal contracts.

After a routine compliance evaluation, OFCCP alleged that Locke Lord LLP discriminated in its practice of issuing bonuses to 22 female associates. While not admitting the allegations, Locke Lord LLP agreed to provide relief for the affected associates totaling $150,000 in lost bonuses and interest, as well as assuring that all employees are afforded equal employment opportunities.

“This agreement is an outstanding example for the legal industry to follow,” said the Office of Federal Contract Compliance Northeast Regional Director Diana Sen in New York.

“Locke Lord is working with us to ensure pay equity for its female associates,” said Office of Federal Contract Compliance Programs Director Craig Leen. “Together, we will ensure that the company’s employment practices comply with equal employment opportunity requirements.”

In addition to Executive Order 11246, OFCCP enforces Section 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
October 1, 2020
Release Number
20-1846-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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Jacksonville, Florida, Employer to Pay Back Wages to Workers With Disabilities After U.S. Department of Labor Investigation

News Release

Jacksonville, Florida, Employer to Pay Back Wages to Workers With Disabilities After U.S. Department of Labor Investigation

JACKSONVILLE, FL After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Pine Castle Inc. – a Jacksonville, Florida, facility for adults with intellectual and development disabilities – will pay $14,487 in back wages to 48 employees for failing to meet the requirements of Section 14(c) of the Fair Labor Standards Act (FLSA).

WHD found that the employer violated requirements of Section 511 of the Workforce Innovation and Opportunity Act when it failed to provide workers with disabilities with services required for it to pay sub-minimum wages. Section 511 requires that employers that pay sub-minimum wages under the FLSA’s Section 14(c) must provide services such as career counseling, information and referral services from the state vocational rehabilitation agency and information about local opportunities for self-advocacy, self-determination and peer-mentoring training. Since Pine Castle failed to ensure its workers received required services, WHD determined the employer was obligated to pay affected workers the full federal minimum wage of $7.25 per hour.

“The U.S. Department of Labor is committed to ensuring that all workers receive the hard-earned wages legally due to them and to protecting workers with disabilities from workplace exploitation,” said Wage and Hour Division District Director Wildalí De Jesús, in Orlando, Florida. “Section 511 of the Rehabilitation Act and FLSA Section 14(c) require some very specific actions by employers who participate in these programs. We encourage all employers to contact their local Wage and Hour Division office where a trained professional can answer their questions, and help them avoid violations.”

Section 14(c) of the FLSA offers more job opportunities for workers with disabilities when their disability affects their productive capacity for the work being performed. After applying for and receiving a certificate from WHD, the employer may determine their employees’ productivity and calculate the appropriate commensurate wage as a percentage of the rate for experienced employees performing similar jobs in the area.

For more information about the FLSA, Section 14(c) 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 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
September 29, 2020
Release Number
20-1696-ATL
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Recovers Back Wages for Employees After Restaurant Misses Payroll in Violation of Federal Law

News Release

U.S. Department of Labor Recovers Back Wages for Employees After Restaurant Misses Payroll in Violation of Federal Law

AUSTIN, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Bottom of the Cup Inc. – a café and coffee house based in Round Rock, Texas – will pay $14,286 in back wages to 15 employees after the employer missed payroll, violating the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA).   

WHD investigators found Bottom of the Cup Inc. – doing business as Star Coffee Texas – missed payroll and by doing so, violated the FLSA. The restaurant also failed to keep accurate records as the law requires.

“The U.S. Department of Labor continues to ensure employers comply with federal law and that employees receive the wages they have legally earned,” said Wage and Hour District Director Nicole Sellers in Austin, Texas. “Employers are legally obligated to pay employees for all the hours they have worked, and to do so on their regular pay day. We encourage employers to reach out to us and to use the many tools we provide to help them understand their responsibilities.”

The employer cooperated during the investigation, and paid all of the back wages owed.

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 WHD offices.

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 the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/agencies/whd including a search tool for workers who may be owed back wages collected by 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
September 25, 2020
Release Number
20-1343-DAL
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Recovers Back Wages for 206 Employees After Investigation of Austin, Texas, Restaurants

News Release

U.S. Department of Labor Recovers Back Wages for 206 Employees After Investigation of Austin, Texas, Restaurants

AUSTIN, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Controllables Management LLC – owner of five Austin, Texas restaurants – has paid $46,153 to 206 employees for violations of the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA).   

WHD investigators found Controllables Management LLC missed payroll at five of its restaurants in Austin. By doing so, the employer failed to pay required minimum wage and overtime pay to its employees, in violation of the FLSA. The restaurant also failed to keep accurate records as the law requires.

The investigation included the following restaurants in Austin:

  • Sixth & Lamar Inc., doing business as 24 Diner
  • Cookbook LLC, doing business as Cookbook Café
  • Elm Food Hall LLC, doing business as Fareground Food Hall
  • Heartfelt Hospitality LLC, doing business as Irene’s
  • Four Round Windows LLC, doing business as Italic

“Employers must pay their employees the wages they have legally earned,” said Wage and Hour District Director Nicole Sellers in Austin, Texas. “Employees count on their earned wages to pay for critical[HR-W1]  necessities, especially during the pandemic. We encourage employers to reach out to us and to use the many tools we provide to help them understand their responsibilities.”

Controllables Management LLC representatives cooperated during the investigation, and paid all the back wages owed.

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.

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 the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/agencies/whd including a search tool for workers who may be owed back wages collected by 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
September 25, 2020
Release Number
20-1344-DAL
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Proposes Rule to Clarify Employee and Independent Contractor Status Under the Fair Labor Standards Act

News Release

U.S. Department of Labor Proposes Rule to Clarify Employee and Independent Contractor Status Under the Fair Labor Standards Act

WASHINGTON, DC – The U.S. Department of Labor today announced a proposed rule clarifying the definition of employee under the Fair Labor Standards Act (FLSA) as it relates to independent contractors.

“The Department’s proposal aims to bring clarity and consistency to the determination of who’s an independent contractor under the Fair Labor Standards Act,” said Secretary of Labor Eugene Scalia. “Once finalized, it will make it easier to identify employees covered by the Act, while respecting the decision other workers make to pursue the freedom and entrepreneurialism associated with being an independent contractor.”

“The rule we proposed today continues our work to simplify the compliance landscape for businesses and to improve conditions for workers,” said Wage and Hour Division Administrator Cheryl Stanton. “The Department believes that streamlining and clarifying the test to identify independent contractors will reduce worker misclassification, reduce litigation, increase efficiency, and increase job satisfaction and flexibility.”

The Department’s proposed rule would:

  • Adopts an “economic reality” test to determine a worker’s status as an FLSA employee or an independent contractor. The test considers whether a worker is in business for himself or herself (independent contractor) or is economically dependent on a putative employer for work (employee);
  • Identifies and explains two “core factors,” specifically the nature and degree of the worker’s control over the work, and the worker’s opportunity for profit or loss based on initiative and/or investment. These factors help determine if a worker is economically dependent on someone else’s business or is in business for himself or herself;
  • Identifies three other factors that may serve as additional guideposts in the analysis: the amount of skill required for the work; the degree of permanence of the working relationship between the worker and the potential employer; and whether the work is part of an integrated unit of production; and
  • Advises that the actual practice is more relevant than what may be contractually or theoretically possible in determining whether a worker is an employee or an independent contractor.

This Notice of Proposed Rulemaking (NPRM) is available for review and public comment for 30 days after it is published in the Federal Register. The Department encourages interested parties to submit comments on the proposed rule. Today’s web posting offers the public more time to review the NPRM before the comment period begins. 

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 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
September 22, 2020
Release Number
20-1557-NAT
Media Contact: Eric Holland
Phone Number
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