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

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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

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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

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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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U.S. Department of Labor Investigation Results in Iowa Manufacturer Paying 150 Employees $279,505 in Back Wages

News Release

U.S. Department of Labor Investigation Results in Iowa Manufacturer Paying 150 Employees $279,505 in Back Wages

NEW HAMPTON, IA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Precision of New Hampton Inc. – based in New Hampton, Iowa – will pay 150 employees a total of $279,505 in back wages for violating the Fair Labor Standards Act (FLSA).

The WHD investigation found the manufacturer of torque convertors violated the FLSA by deducting breaks shorter than 30 minutes from employees’ pay as lunch breaks. The FLSA requires employers to pay for short rest breaks, usually 20 minutes or less, as work time. Meal periods, typically 30 minutes or longer, may be unpaid as long as workers are completely relieved of job duties during that time.

“Employers must provide a minimum of 30 minutes for a bona fide meal break if they intend to deduct the time from an employee’s time records. They must also ensure that employees do not perform work during that time," said Wage and Hour District Director Marcy Boldman, in Des Moines, Iowa. “The Department of Labor works to ensure employers comply with federal law so that every employee receives the wages they have rightfully earned. We encourage employers to use the wide variety of tools we offer to educate themselves and to ensure they comply with the law. We invite any worker or employer to call us with questions about their rights or responsibilities.”

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.

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
September 21, 2020
Release Number
20-1688-KAN
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Investigation Results in Court Ordering New York Horse Trainer to Pay $425,000 in Back Wages, Damages and Penalties

News Release

U.S. Department of Labor Investigation Results in Court Ordering New York Horse Trainer to Pay $425,000 in Back Wages, Damages and Penalties

NEW YORK, NY – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Weaver Racing Inc. and owner George R. Weaver paid a total of $425,000 in court-ordered back wages, liquidated damages and civil penalties for violations of the Fair Labor Standards Act (FLSA) and the labor provisions of the H-2B visa program.

WHD investigators found that the thoroughbred horse racing trainer and the company violated the FLSA by failing to pay overtime to groomers and hot walkers – in Elmont and Saratoga, New York – when they worked more than 40 hours in a workweek. WHD also cited Weaver for recordkeeping violations for the failure to record the number of hours employees worked accurately.

The H-2B program violations resulted from the following:

  • Employer failing to pay H-2B employees the required hourly wage;
  • Requiring H-2B employees to bear the cost of their travel to the U.S. and the costs of their visas;
  • Collecting cash from workers to cover the company’s own attorney and visa filing fees;
  • Failing to cover the full cost of employees’ travel to and from the employer’s worksite;
  • Regularly sending H-2B employees to work in geographic areas where the company had not completed the required recruitment of U.S. workers;
  • Failing to disclose the availability of free housing, bonuses and overtime hours in its job offer and recruitment to prospective U.S. workers;
  • Instructing employees to underreport their hours if WHD interviewed them; and
  • Attempting to intimidate employees from participating in WHD’s investigation.

“The Wage and Hour Division is committed to safeguarding American jobs, leveling the playing field for law-abiding employers and protecting vulnerable workers from being paid less than they are legally owed,” said Wage and Hour Division Long Island District Director David An in Westbury, New York. “We encourage employers to reach out to us with questions, and to use the wide variety of tools we offer to help them understand their responsibilities.”

“These legal actions demonstrate the U.S. Department of Labor will take all steps necessary to ensure employees receive the wages that they have rightfully earned and that employers that violate laws do not gain an unfair advantage over employers who obey the law,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York.

A consent judgment filed with the U.S. District Court for the Eastern District of New York orders the defendants to pay $165,480 – $75,166 in overtime back wages and an equal amount in liquidated damages – to 59 employees and pay $15,147 in civil penalties for the FLSA violations. The judgment also requires them to designate a compliance officer to oversee pay practices, implement and use an electronic timekeeping system to ensure accurate tracking of employees’ work hours, and train certain supervisory employees on the requirements of the FLSA and the H-2B requirements of the Immigration and Nationality Act. It also orders them not to commit future violations and prohibits them from interfering with WHD investigations and retaliating against employees.

An H-2B consent findings and order filed separately with the Office of Administrative Law Judges requires Weaver Racing Inc. to pay $175,099 in H-2B back wages to 56 employees and $84,420 in civil penalties. The employer also agrees to institute and maintain a comprehensive H-2B compliance program, designate a compliance officer to ensure compliance with H-2B program requirements and conduct orientation sessions to instruct employees how to use the timekeeping system, and to inform them of their rights under the H-2B program.

WHD’s Long Island District Office conducted the investigation. Trial Attorney Jason E. Glick of the regional Office of the Solicitor in New York litigated the case for the department.

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/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. Weaver Racing Inc. doing business as Weaver Racing Stable Inc.; Weaver Racing Stables Inc., doing business as George Weaver Racing Stable and George Weaver Racing Stable LLC; and George R. Weaver, an individual.

Civil Action No. 20-cv-3836-SJF-ARL

Administrator, Wage and Hour Division, United States Department of Labor v. Weaver Racing Inc. doing business as Weaver Racing Stables Inc.

OALJ Case No. 2020-TNE-00046

 

Agency
Wage and Hour Division
Date
September 16, 2020
Release Number
20-1625-NEW
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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U.S. Department of Labor Awards Nearly $11.2 Million in Dislocated Worker Grants in Response to Coronavirus Public Health Emergency

News Release

U.S. Department of Labor Awards Nearly $11.2 Million in Dislocated Worker Grants in Response to Coronavirus Public Health Emergency

WASHINGTON, DC – The U.S. Department of Labor today announced the award of three Dislocated Worker Grants (DWGs) totaling $11,150,278 to Oklahoma, Washington and Wisconsin, to help address the workforce-related impacts of the coronavirus public health emergency.

These awards are funded under the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provided $345 million for DWGs to prevent, prepare for and respond to the coronavirus. This latest award follows 10 previous waves of funding, bringing the total amount awarded to states and territories to $274,241,918.

The U.S. Department of Health and Human Services declared the coronavirus a nationwide public health emergency on Jan. 31, 2020. The Federal Emergency Management Agency also issued coronavirus emergency declarations for states, outlying areas and Indian tribal governments on March 13, 2020. These federal declarations enable the Secretary of Labor to award Disaster Recovery DWGs to help address the workforce-related impacts of this public health emergency.  

Disaster Recovery DWGs may provide eligible participants disaster-relief employment to address the coronavirus impacts within their communities, as well as employment and training activities. Employment Recovery DWGs provide reemployment services to eligible individuals affected by mass layoffs, such as those resulting from the coronavirus pandemic. 

Supported by the Workforce Innovation and Opportunity Act of 2014, 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.

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

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
September 15, 2020
Release Number
20-1777-NAT
Media Contact: Eric Holland
Phone Number
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San Antonio, Texas-Area Restaurants Pay $71,899 in Back Wages To Employees After U.S. Department of Labor Investigation

News Release

San Antonio, Texas-Area Restaurants Pay $71,899 in Back Wages To Employees After U.S. Department of Labor Investigation

SAN ANTONIO, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), an enterprise operating three San Antonio, Texas, area restaurants has paid $71,899 in back wages to 327 employees to resolve violations of the tip-pooling requirements of the Fair Labor Standards Act (FLSA).

The WHD investigation found that Boerne Longhorn Cafe LLC, doing business as Longhorn Café Boerne; Big Juicy Inc., doing business as Longhorn Café Blanco; and Longhorn Cafe Series LLC, doing business as Longhorn Café Leasing violated the tipped worker requirements of the FLSA by allowing tips to be improperly diverted to managers and administrative staff. The law prohibits those employees from participating in a tip-pooling arrangement.

“Employees must be paid all the wages they have legally earned including tips acquired through an employer’s tip-pool practice,” said Wage and Hour Division District Director Cynthia Ramos, in San Antonio, Texas. “The Wage and Hour Division encourages other employers in this industry to review their own pay practices to ensure they comply with the law, and to reach out to us with any questions they may have about their responsibilities. Workers, too, can call us confidentially with any questions or concerns about their employment.”   

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 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 14, 2020
Release Number
20-1319-DAL
Media Contact: Chauntra Rideaux
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Guam Construction Company to Pay $109,112 in Back Wages and Penalties For Overtime Violations Found by U.S. Department of Labor

News Release

Guam Construction Company to Pay $109,112 in Back Wages and Penalties For Overtime Violations Found by U.S. Department of Labor

DEDEDO, GUAM – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Modern Konstrak – a construction company based in Dededo, Guam – will pay $85,993 to 75 employees for violations of the Fair Labor Standards Act’s (FLSA) overtime requirements. The employer will also pay $23,118 in penalties for the willful nature of the violations.

The WHD investigation found that Modern Konstrak paid employees for their overtime hours at straight-time rates. The FLSA requires employers to pay overtime at time and one-half workers’ regular rates of pay for hours they work beyond 40 in a workweek. The company also failed to keep accurate records of the actual number of hours employees worked, resulting 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 District Director Terence Trotter in Honolulu, Hawaii. “Employers cannot enter into agreements with their employees to work for less than the law requires. 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, confidential calls or in-person visits to local WHD offices.

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

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 14, 2020
Release Number
20-1680-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Offers Webinar for Iowa Business Owners, Employers and Other Stakeholders on Coronavirus-Related Paid Leave

News Release

U.S. Department of Labor Offers Webinar for Iowa Business Owners, Employers and Other Stakeholders on Coronavirus-Related Paid Leave

DES MOINES, IA – The U.S. Department of Labor’s Wage and Hour Division (WHD), the IRS and the U.S. Small Business Administration (SBA) are presenting a webinar on paid sick leave, and expanded family and medical leave requirements of the Families First Coronavirus Response Act (FFCRA) for Iowa’s employers and business owners.

The webinar will provide FFCRA information including details about paid sick leave for certain reasons related to the coronavirus, and paid expanded family and medical leave for child care related to the coronavirus, and will focus on eligibility, requirements for providing paid leave and tax credits for covered business owners. SBA representatives will also be available to provide guidance to small business owners and entrepreneurs. 

WHAT:          Navigating COVID-19 Webinar

WHEN:          Sept. 15, 2020

10 to 11 a.m. CDT

WHERE:       Link to attend.

To attend, participants can connect via the Microsoft Teams app, or on the web using either the Microsoft Edge or Google Chrome browser. 

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 reimburse the costs of providing employees with paid leave for certain 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 questions about the SBA, please contact SBA Economic Development Specialist Lori Hackney at lori.hackney@sba.gov.  

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
September 11, 2020
Release Number
20-1641-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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