Court Finds Massachusetts Companies and Officers in Contempt For Withholding from Employees More Than $1 Million in Back Wages

News Release

Court Finds Massachusetts Companies and Officers in Contempt For Withholding from Employees More Than $1 Million in Back Wages

BOSTON, MA – The U.S. District Court for the District of Massachusetts has found two Massachusetts construction companies and two of their officers in civil contempt for failing to fulfill certain terms of an August 2016 consent judgment and order requiring them to pay $2,359,685 in back wages and liquidated damages to 478 employees under the Fair Labor Standards Act (FLSA).

The court’s order on contempt grants a petition the U.S. Department of Labor filed to enforce the back wage provisions of the 2016 consent judgment, which restrained Force Corporation, AB Construction Group Inc., Juliano Fernandes and Anderson dos Santos from withholding from their employees $1,179,842.55 in back wages, plus interest.

Force Corp., AB Construction Group Inc. and dos Santos failed to present any evidence in response to the department’s petition, resulting in the court holding them in contempt. Fernandes argued that he was unable to pay the amounts owed under the consent judgment, but the court found that his “inability to pay argument is significantly undercut by the facts.”

While Fernandes should have been paying his employees under the consent judgment, the court determined that he purchased over a million dollars’ worth of real estate and, in what the court stated “can only be viewed as an act of hubris, he voted himself and his wife a raise” from one of his other companies, Turn Key Lumber Inc., “and chose to take an expensive vacation at the Fountainebleau Resort.” The court further concluded that Fernandes was “either hiding assets or deliberately obfuscating his financial position to avoid paying the Consent Judgment.” Because Fernandes intermingled his assets and liabilities with Turn Key, the court held that it could grant relief in the contempt action based on Turn Key’s assets.

As part of the contempt order, the judge appointed a special master to examine the finances of all four defendants, Fernandes’s wife and five non-defendant entities, including Turn Key, in which the individual defendants and/or Fernandes’s wife have an ownership or controlling interest. The court also ordered the defendants and companies owned or controlled by them not to make certain transfers of money, assets, or property at this time.

Based on an interim report filed by the special master, the court appointed the special master as a receiver and ordered him to take possession of and sell three real properties that were owned, controlled, or used by Fernandes, his wife, and/or Turn Key. The court recently allowed the special master/receiver to enter into specific agreements to list the three properties for sale.

“This decision shows that the U.S. Department of Labor will pursue necessary and effective legal actions to ensure that employers comply with the Fair Labor Standards Act,” said Solicitor of Labor Kate O’Scannlain.

“The U.S. Department of Labor will not stand by and allow employers to renege on their legal obligations. The department took this action to hold the defendants in contempt due to their continued defiance of the 2016 consent judgment, despite numerous attempts at resolution,” said Regional Solicitor of Labor for New England Maia Fisher in Boston. “The defendants’ failure to comply with the consent judgment not only deprived hundreds of workers of their wages but also placed law-abiding employers at a competitive disadvantage. Fernandes built Turn Key’s business using the wages that he had unlawfully withheld from his employees, which is unfair to employers that properly pay workers their wages when they are due.”

“The defendants’ ongoing refusal to pay their employees their hard-earned wages shortchanges workers still waiting a long time to be paid,” said Wage and Hour Division Regional Administrator Mark Watson. “The U.S. Department of Labor is committed to ensuring employees receive all the wages they have rightfully earned and employers compete on a level playing field.”

The FLSA violations underlying the 2016 consent judgment resulted, in part, from the defendants’ misclassifying the majority of their employees as independent contractors to avoid paying them overtime. The defendants have paid only $527,900 pursuant to the consent judgment, and continue to owe a total of $1,831,785, plus interest, to the affected employees.

The Boston District Office of the department’s Wage and Hour Division (WHD) conducted the original investigation. The department’s Boston Regional Office of the Solicitor is litigating the case.

For more information about the FLSA, and other laws enforced by WHD, contact the Division’s 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, including a search tool to use if you think you may be owed back wages collected by the Division.

Scalia v. Force Corporation, AB Construction Group Inc., Juliano Fernandes, and Anderson dos Santos

Civil Action Number: 16-cv-40103-TSH

 

Agency
Office of the Solicitor
Date
July 15, 2020
Release Number
20-595-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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U.S. Department of Labor’s PAID Program Helps Workers and Employers as America Reopens

News Release

U.S. Department of Labor’s PAID Program Helps Workers and Employers as America Reopens

WASHINGTON, DC – The U.S. Department of Labor Wage and Hour Division’s (WHD) Payroll Audit Independent Determination (PAID) Program continues to provide an avenue to get workers the wages they are owed, bring employers into compliance and accomplish both goals with an efficiency that saves taxpayers money, with more than $7 million in back wages found for more than 11,000 workers.

“PAID is a common sense program that helps employers comply with the law while ensuring workers get the money they’ve earned,” said Deputy Secretary of Labor Patrick Pizzella. “As more Americans come back to work, the PAID program provides an effective tool for the U.S. Department of Labor to ensure workers around the country are being made whole.”

PAID resolves potential overtime and minimum wage violations under the Fair Labor Standards Act (FLSA). The program’s primary objectives are to resolve such claims quickly and without litigation, to improve employers’ compliance and to ensure that more employees receive the back wages they are owed faster.

“For employers that missed payroll, or otherwise inadvertently found themselves in violation of the FLSA as they dealt with the effects of the coronavirus, PAID allows them to step forward, pay their workers the wages they earned, and get back to business,” said Wage and Hour Division Administrator Cheryl Stanton.

Under PAID, employers are encouraged to conduct audits and, if they discover overtime or minimum wage violations, to self-report those violations. Employers using PAID are not subject to liquidated damages or civil money penalties as a condition to finalize settlements. Without exception, employers that participate in the program are required to pay 100 percent of the back wages due for the violations they seek to resolve.

Compared to traditional investigations, compliance actions under PAID find more back wages for workers in less time. Through the end of fiscal year 2019, PAID actions found, on average, more than four times the back wages of traditional full investigations and more than 10 times the back wages per WHD staff hour invested.

As the nation navigates the effects of coronavirus on the workplace, WHD is ramping up efforts to get back wages to workers through its Workers Owed Wages (WOW) online system. The WOW system allows workers and their advocates to find out through a user-friendly series of questions – in English and Spanish – if WHD holds back wages owed to them as the result of an investigation. If they are owed wages, the system puts them in touch with the WHD office that can help them get their check.

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 FLSA, on job-protected leave under the Family and Medical Leave Act, and on paid sick and expanded family and medical leave under the Families First Coronavirus Response Act at https://www.dol.gov/agencies/whd/pandemic

For more information about wage laws enforced by WHD, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). 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 under immigration law. 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
July 14, 2020
Release Number
20-1061-NAT
Media Contact: Emily Weeks
Phone Number
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U.S. Department of Labor and Nova Southeastern University Reach Agreement to Resolve Compensation Disparities

News Release

U.S. Department of Labor and Nova Southeastern University Reach Agreement to Resolve Compensation Disparities

MIAMI, FL – After a routine compliance evaluation by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) that found pay disparities, the Department has entered into a conciliation agreement with Nova Southeastern University – a private university in Davie, Florida. The university has agreed to pay $300,000 in back wages in addition to $587,070 in salary adjustments already made by the university to resolve pay disparities. Nova Southeastern University does not admit any wrongdoing in the agreement.

OFCCP’s preliminary findings showed that, as of July 1, 2016, pay disparities existed for 86 women employed in business-related director/manager positions by Nova Southeastern University. OFCCP found the university’s actions did not comply with Executive Order 11246, which prohibits federal contractors from discriminating in employment based on gender.

In addition to paying back wages and making salary adjustments, Nova Southeastern University will take steps to ensure its promotion and compensation practices, including recordkeeping and internal auditing procedures, meet legal requirements. The university agreed to establish monitoring and oversight mechanisms at its Florida campus locations in Davie, Fort Lauderdale, Fort Myers, Jacksonville, Miami, Miramar, Dania Beach, Orlando and Palm Beach Gardens; and at its campus in Puerto Rico.

“Nova Southeastern University is taking multiple proactive steps to ensure equity in pay and promotion that will help it comply with current federal laws,” said Office of Federal Contract Compliance Programs Southeast Regional Director Sam Maiden, in Atlanta, Georgia.

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

To provide a general overview of contractor obligations specific to educational institutions, OFCCP issued a technical assistance guide.

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. Executive Order 11246 also requires 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
July 10, 2020
Release Number
20-705-ATL
Media Contact: Eric R. Lucero
Phone Number
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​​​​​​​U.S. Department of Labor Recovers $61,875 in Back Wages For Tortilla Factory Workers in the Texas Rio Grande Valley

News Release

​​​​​​​U.S. Department of Labor Recovers $61,875 in Back Wages For Tortilla Factory Workers in the Texas Rio Grande Valley

MISSION, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), FELMEX LLC – a tortilla factory with four locations in Texas’ Rio Grande Valley – has paid $61,875 in overtime back wages to 46 employees to resolve violations of the overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found FELMEX LLC – operating as Tortilleria Aries – violated the FLSA when it failed to combine employees’ hours when they worked at multiple locations. The employer classified some employees as independent contractors and paid them a fixed salary, and failed to pay hourly employees overtime for hours worked over 40 hours in a workweek. The employer also failed to include bonuses in the employees’ regular rate of pay. The employer also violated the FLSA’s recordkeeping provision.

“Employers must ensure they know the requirements of the federal labor laws,” said Wage and Hour Division District Director Nathan Barrow, in McAllen, Texas. “Employer are responsible for learning the different provisions of the law. We encourage employers to contact us with any federal labor law questions.”   

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.

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 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 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 McNamara-O'Hara 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
July 7, 2020
Release Number
20-294-DAL
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Recovers Back Wages For New Orleans, Louisiana, Restaurant Workers

News Release

U.S. Department of Labor Recovers Back Wages For New Orleans, Louisiana, Restaurant Workers

NEW ORLEANS, LA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD,) L Squared Investment Group LLC – owner and operator of Morrow’s Restaurant in New Orleans, Louisiana – has paid $35,620 in back wages to 65 employees for violating the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined that L Squared Investment Group LLC improperly made uniform and silverware shortage deductions from tipped and non-tipped minimum wage employees which brought their wages below the federal minimum wage. In addition, the employer paid only straight-time rates to misclassified non-exempt cooks who worked overtime hours. The positions affected included servers, bartenders, busboys, dishwashers, food runners and cooks. WHD also found the employer violated FLSA recordkeeping requirements.

“The U.S. Department of Labor is committed to improving federal labor law compliance through education of employers and employees, and enforcement actions,” said Wage and Hour Division District Director Troy Mouton, in New Orleans, Louisiana. “This investigation revealed minimum wage and overtime violations – common in the restaurant industry – which are easily avoidable. Noncompliance can be costly.”

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 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 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
July 7, 2020
Release Number
20-347-DAL
Media Contact: Chauntra Rideaux
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Arkansas Nail Manufacturer Pays $111,895 to Workers to Settle Overtime, Retaliation Violations Following a U.S. Department of Labor Investigations

News Release

Arkansas Nail Manufacturer Pays $111,895 to Workers to Settle Overtime, Retaliation Violations Following a U.S. Department of Labor Investigations

PRAIRIE GROVE, AR – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Specialty Fastening Systems Inc. – doing business as Specialty Nail Company in Prairie Grove, Arkansas – has paid $111,895 in back wages to 260 employees to resolve violations of the overtime and anti-retaliation provisions of the Fair Labor Standards Act (FLSA).

Investigators found that Specialty Nail Company – a manufacturer of bulk and collated nails for industrial and construction applications – allowed its employees only a 15-minute lunch break but automatically deducted 30 minutes from workers’ time. They also found the employer altered time cards to benefit the company when reporting employees’ time to five separate temporary staffing agencies it used for its labor force, resulting in employees not being paid required overtime for all the hours they worked over 40 in a workweek. The investigation also revealed that Specialty Nail Company violated the FLSA’s anti-retaliation provision when it fired two employees after they requested to be paid for overtime hours they had worked. WHD also found the employer violated the FLSA’s recordkeeping requirements by failing to keep all required records.

“Altering payroll records in a way that causes workers to lose earned income and terminating workers for rightfully questioning such practices is not only wrong, it’s against the law,” said Wage and Hour Division District Director Hanz Grünauer, in Little Rock, Arkansas. “Employers need to understand the rules and familiarize themselves with all requirements of the law. Other employers should use the results of this investigation as an opportunity to evaluate their own compliance, and proactively avoid costly 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.

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.  

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Agency
Wage and Hour Division
Date
July 7, 2020
Release Number
20-509-DAL
Media Contact: Chauntra Rideaux
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Charlotte Area Transit System Reinstates Employee, Pays Back Wages After Violating Family and Medical Leave Act

News Release

Charlotte Area Transit System Reinstates Employee, Pays Back Wages After Violating Family and Medical Leave Act

CHARLOTTE, NC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the Transit Management of Charlotte Inc. – operating as Charlotte Area Transit System (CATS) – has reinstated and paid one employee $21,998 in back wages for violating requirements of the Family and Medical Leave Act (FMLA).

Investigators determined the public transit operator wrongly assessed disciplinary “attendance points” against the employee for missed work time the employer should have recognized as FMLA-qualifying time off. CATS subsequently wrongfully terminated the employee for excessive absences once enough points had accumulated. To resolve the violation, the employer reinstated the worker, paid back wages for the time that the employee would have worked and restored the employee’s medical benefits.

“The Family and Medical Leave Act provides employees with critical workplace flexibility, protecting their jobs when they, or an eligible family member, need care for a serious health condition,” said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. “The U.S. Department of Labor is committed to protecting employees’ FMLA rights, and to helping employers understand their responsibilities. We encourage all employers to reach out to us with questions, and to use the many resources we offer to avoid 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 FMLA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). 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 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
June 29, 2020
Release Number
20-1271-ATL
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Issues Interim Final Rule to Implement Provisions of the United States-Mexico-Canada Agreement

News Release

U.S. Department of Labor Issues Interim Final Rule to Implement Provisions of the United States-Mexico-Canada Agreement

Promotes higher wages, better jobs for U.S. auto industry

WASHINGTON, DC – The U.S. Department of Labor today announced an interim final rule providing regulations necessary to implement and administer the high-wage components of the Labor Value Content (LVC) requirements set forth in the United States-Mexico-Canada Agreement (USMCA) and the treaty’s implementing statute. The rule provides needed guidance to producers of motor vehicles covered by the USMCA, describing criteria they must meet to qualify for preferential tariff claims under the treaty.

The LVC requirements promote more high-wage jobs for the U.S. automobile and auto parts industry by requiring that, to qualify for preferential tariff claims under the treaty, manufacturers must produce a significant portion of certain motor vehicles using high-wage labor. Among other requirements, the treaty requires that for a passenger vehicle, light truck or heavy truck to be eligible for preferential tariff treatment, a minimum percentage of the cost of the vehicle must be made at a facility that pays an average hourly base rate of at least $16 per hour.

“Through the USMCA, the United States is establishing more balanced, reciprocal trade that supports high-paying jobs for Americans and grows the North American economy,” said Secretary of Labor Eugene Scalia. “The USMCA recognizes that international trade, investment and economic growth are promoted through the protection and enforcement of labor rights and the improvement of working conditions. This is a significant win for the workforce in the American auto industry, and helps level the playing field for U.S. manufacturers.”

To qualify for preferential tariff treatment, a producer must file a certification with U.S. Customs and Border Protection (CBP) demonstrating that its production of covered vehicles meets the high-wage components of the LVC requirements. WHD, in conjunction with CBP, will review those certifications.

“The Wage and Hour Division is proud to support this new law through our role in the certification and verification process,” said Wage and Hour Division Administrator Cheryl Stanton. “The interim final rule we published today ensures that manufacturers and other stakeholders understand the specific requirements and procedures for claiming preferential tariff treatment, and it provides transparency into the process.”

The interim final rule is effective July 1, 2020 and is available for review and public comment for 60 days. The Department encourages interested parties to submit comments. The interim final rule, along with the procedures for submitting comments, can be found at the Wage and Hour Division’s interim final rule website.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of America’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 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
June 29, 2020
Release Number
20-1318-NAT
Media Contact: Emily Weeks
Phone Number
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Norwell, Massachusetts, Employer Pays Back Wages to Employee Denied Coronavirus-Related Paid Sick and Family Leave

News Release

Norwell, Massachusetts, Employer Pays Back Wages to Employee Denied Coronavirus-Related Paid Sick and Family Leave

BOSTON, MA – After the U.S. Department of Labor’s Wage and Hour Division (WHD) initiated a compliance action, Consumer Medical – based in Norwell, Massachusetts – has paid an employee $3,076 in back wages to resolve violations of the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA) provisions of the Families First Coronavirus Response Act (FFCRA).

Investigators found that the employer denied emergency paid sick leave to an employee who was experiencing coronavirus symptoms and seeking a medical diagnosis. The employer also denied EFMLEA leave to the employee to care for her child, whose school closed for coronavirus-related reasons.

WHD contacted Consumer Medical and informed them of the leave requirements under the new law, which went into effect on April 1, 2020. The employer then paid the employee $2,307 in back wages for the EPSLA leave and $769 for EFMLEA leave. Consumer Medical also agreed to comply with the FFCRA in the future.

“Employers must take all necessary steps to comply with the Families First Coronavirus Response Act and provide employees paid sick leave to care for themselves and family members when required,” said Wage and Hour Division District Director Carlos Matos in Boston, Massachusetts. “We encourage employers and employees to call us for assistance to improve their understanding of the new law’s requirements and to use our educational online tools to avoid violations like those found in this case.”

The FFCRA requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to the coronavirus. The Department’s WHD administers and enforces the new law’s paid leave requirements. Please visit WHD’s “Quick Benefits Tips” for information about how much leave workers may qualify to use, and the wages employers must pay. Learn more about the FFCRA and other laws enforced by the Wage and Hour Division contact the toll-free helpline at 866-4US-WAGE (487-9243). Download an FFCRA poster.

WHD continues to provide 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 agency also 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
June 29, 2020
Release Number
20-975-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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U.S. Department of Labor Announces Wage and Hour Division Openings

News Release

U.S. Department of Labor Announces Wage and Hour Division Openings

WASHINGTON, DC – The U.S. Department of Labor’s Wage and Hour Division (WHD) will hire 55 additional investigators and eight additional technicians to support its efforts to assist employers and ensure compliance with federal requirements.

Recruits will join 92 investigators recently hired or awaiting placement and 28 technicians that WHD hired earlier in 2020. Interested applicants are encouraged to review the division’s job postings and apply.

Investigators conduct investigations to determine employers’ compliance with applicable federal labor laws.

Technicians provide front-line support for these efforts, including receipt and evaluation of incoming complaints and providing compliance information for employers, employees and other stakeholders.

“Now more than ever, the U.S. Department of Labor’s Wage and Hour Division is critical to helping America’s workers and employers. In addition to enforcing long-standing protections, WHD now enforces the paid sick leave and expanded family and medical leave protections in the Families First Coronavirus Response Act,” said Wage and Hour Division Administrator Cheryl Stanton. “With more than 60 million workers eligible for relief, our team continues to deliver when the workforce needs us most.”

In Fiscal Year 2019, WHD collected a record-setting $322 million in wages owed to workers. The division also conducted a record-setting 3,700 public events to educate employers and workers alike about their workplace rights and responsibilities.

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
June 26, 2020
Release Number
20-1312-NAT
Media Contact: Grant Vaught
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