Missouri Federal Contractor Agrees to Pay $379,089 to Resolve Wage Discrimination found in U.S. Department of Labor Investigation

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Missouri Federal Contractor Agrees to Pay $379,089 to Resolve Wage Discrimination found in U.S. Department of Labor Investigation

ST. JOSEPH, MO – After a compliance review by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), Boehringer Ingelheim Animal Health USA Inc. – a global pharmaceutical company and federal contractor – will pay $379,089 in back pay and interest to 75 female employees to resolve alleged wage discrimination at its St. Joseph, Missouri, facility.

OFFCP alleges discrimination occurred in base compensation for female employees working as scientists, technicians and technical administrators in the production sub-area at the facility that manufactures biological animal vaccines.

“The U.S. Department of Labor is committed to combating pay discrimination and ensuring fair compensation of all employees,” said Office of Federal Contract Compliance Programs Midwest Regional Director Carmen Navarro in Chicago, Illinois. “Boehringer Ingelheim Animal Health USA Inc. worked cooperatively with the Department to resolve these matters and to prevent similar issues from happening again.”

In addition to the distribution of back pay and interest under the agreement, Boehringer Ingelheim Animal Health USA Inc will ensure that its compensation policies and pay procedures are free from discrimination and provide training to all managers, supervisors and other company officials who oversee pay decisions.

Boehringer Ingelheim Animal Health USA Inc. – a subsidiary of Boehringer Ingelheim International GmbH of Rhein, Germany – does not admit liability and denies OFCCP’s allegations.

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 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.

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Agency
Office of Federal Contract Compliance Programs
Date
August 18, 2020
Release Number
20-1284-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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South Florida Landscaping Company to Pay $110,602 in Back Wages To 85 Employees After U.S. Department of Labor Finds Overtime Violations

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South Florida Landscaping Company to Pay $110,602 in Back Wages To 85 Employees After U.S. Department of Labor Finds Overtime Violations

LOXAHATCHEE, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), A Cut Above Landscape & Maintenance Inc. – a landscaping company based in Loxahatchee, Florida – will pay 85 employees $110,602 in back wages for violating overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined A Cut Above Landscape & Maintenance Inc. paid its employees a flat rate per day regardless of the number of hours they worked in a workweek. This practice resulted in violations when employees worked more than 40 hours in a workweek but the employer failed to pay them overtime. The employer also failed to keep required records of the total number of hours employees worked. 

“When employers fail to track properly all the hours employees work, it often results in overtime pay violations,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “The U.S. Department of Labor is committed to educating employers and improving compliance with federal wage laws to protect American workers and to level the playing field for law-abiding employers. We encourage employers to reach out to us with questions and to use the wide variety of tools we offer to ensure they clearly understand their 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 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
August 17, 2020
Release Number
20-1424-ATL
Media Contact: Eric R. Lucero
Phone Number
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Crystal Beach, Florida, Construction Contractor Pays $16,567 in Back Wages After U.S. Department of Labor Investigation Uncovers Overtime Violations

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Crystal Beach, Florida, Construction Contractor Pays $16,567 in Back Wages After U.S. Department of Labor Investigation Uncovers Overtime Violations

CRYSTAL BEACH, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), High Line Construction Services LLC – a construction contractor based in Crystal Beach, Florida – has paid $16,567 in back wages to five employees for violations of the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that High Line Construction Services LLC paid employees straight time for all the hours that they worked, failing to pay overtime when they worked over 40 hours in a workweek.

“We hope that the results of this investigation lead other employers to examine their own pay practices to ensure that they comply with the law,” said Wage and Hour Division District Director Nicolas Ratmiroff, in Tampa, Florida. “The Wage and Hour Division is committed to ensuring that workers are paid all the wages they have legally earned, and that employers all play by the same rules to level the playing field. We encourage all employers and employees to reach out to their local Wage and Hour Division office to learn about their responsibilities and rights under federal law.”

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos or confidential calls to local WHD offices.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the 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
August 13, 2020
Release Number
20-1444-ATL
Media Contact: Eric R. Lucero
Phone Number
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Apopka, Florida, Contractor to Pay $16,852 in Back Wages After U.S. Department of Labor Investigation Uncovers Overtime Violations

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Apopka, Florida, Contractor to Pay $16,852 in Back Wages After U.S. Department of Labor Investigation Uncovers Overtime Violations

APOPKA, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Randall Mechanical Inc., an Apopka, Florida, contractor will pay $16,852 in back wages to 20 employees for violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that Randall Mechanical Inc. failed to pay employees in its accounting department overtime when they worked more than 40 hours in a workweek. Instead, the employer would bank the overtime hours and pay them out, at straight time, as paid time off to be used in future workweeks. Randall Mechanical also failed to keep required records of the total number of hours worked by some employees, triggering a recordkeeping violation under the FLSA.

“Private employers are not permitted to bank overtime hours and use them as compensatory time off in future workweeks,” said Wage and Hour Division District Director Wildalí De Jesús, in Orlando, Florida. “Employees must be paid all the wages they have legally earned, including overtime. We encourage all employers and employees to reach out to their local Wage and Hour Division office to learn their responsibilities and rights under federal law. Anyone with questions can call our offices confidentially and speak with a trained professional to have their questions answered.”

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos or confidential calls to local WHD offices.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the 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
August 12, 2020
Release Number
20-1455-ATL
Media Contact: Eric R. Lucero
Phone Number
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Federal Court Orders Commercial Laundry to Pay Additional $527,986 In Back Wages and Damages After U.S. Department of Labor Appeal

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Federal Court Orders Commercial Laundry to Pay Additional $527,986 In Back Wages and Damages After U.S. Department of Labor Appeal

LANSDOWNE, PA – Following an appeal by the U.S. Department of Labor, the U.S. District Court for the Eastern District of Pennsylvania has ordered Central Laundry Inc., owner George Rengepes and business operator James Rengepes to pay $527,986 in back wages and liquidated damages in addition to the $478,539 awarded by the court in 2018.

In 2015, the Department filed suit against the company in federal court alleging violations of the Fair Labor Standards Act (FLSA). The case proceeded to trial, and in April 2018, the court awarded $478,539 in damages to 21 employees, less than what the department had sought. The department appealed the case, and the U.S. Court of Appeals for the 3rd Circuit reversed the district court’s denial of back wages and liquidated damages for 11 long-tenured laundry workers identified in Central Laundry’s time records. On Feb. 25, 2020, following the 3rd Circuit’s decision on appeal, the district court awarded these 11 employees full damages. The court also increased its earlier awards for two other employees.

“For decades, the employer paid these workers extremely low wages while they worked extremely long hours, up to seven days per week,” said Wage and Hour’s District Director James Cain, in Philadelphia, Pennsylvania. “Our efforts in this case recovered the wages these workers had legally earned, allowing them to pay bills, buy groceries and provide for their families. We are committed to ensuring a level playing field for other companies in this industry.”

“This court decision shows that we will hold companies that fail to comply with the law accountable, and ensure that every employee receives their hard-earned wages,” said Philadelphia Regional Solicitor Oscar L. Hampton III.

WHD’s investigation found, among other violations, that Central Laundry paid workers as little as $5.00 per hour, well below the $7.25 per hour minimum wage, and only $7.50 per hour for overtime hours in weeks where many workers worked between 50 and 90 hours.

WHD is committed to providing employers with the tools they need to assist them in fulfilling their obligation to understand and comply with the variety of laws the division enforces. 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 federal wage laws, call the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://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
August 10, 2020
Release Number
20-501-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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U.S. Department of Labor and Bank of America Sign Agreement Implementing Companywide Program to Enhance Working Environment For Nursing Mothers

News Release

U.S. Department of Labor and Bank of America Sign Agreement Implementing Companywide Program to Enhance Working Environment For Nursing Mothers

WASHINGTON, DC – The U.S. Department of Labor’s Wage and Hour Division (WHD) today announced the signing of an agreement with Bank of America N.A. that implements systemic changes enhancing the employer’s working environment by taking defined steps to accommodate the reasonable break time for nursing mothers’ requirements of the Fair Labor Standards Act (FLSA). This agreement affords working mothers the support they need in the workplace when balancing professional and personal responsibilities.

The agreement comes after a WHD investigation found that Bank of America failed to provide reasonable break time and a space free from intrusion for a nursing mother to express breast milk at a Tucson, Arizona, location. Bank of America agreed to comply and moved forward to make all necessary adjustments to ensure compliance at the Arizona location and at all of the company’s locations nationwide.

After discussions with WHD, Bank of America – headquartered in Charlotte, North Carolina – entered into an enhanced compliance agreement with the agency that commits the employer to implementing physical modifications over a multi-year period to accommodate compliance at all of its facilities nationwide, covering more than 170,000 employees. Facility modifications will begin in Arizona, and Bank of America will prioritize modifications nationwide based upon immediate nursing mothers’ space requirements. In addition to the physical modifications, the company will provide internal training for some managers and human resources personnel, and provide expectant mothers who intend to take maternity leave with a new mother’s packet, which includes a link to the bank’s FLSA break time policy for nursing mothers.

“The U.S. Department of Labor applauds Bank of America for leading by example and demonstrating how complying with the law benefits everyone,” said Wage and Hour Division Administrator Cheryl Stanton. “This agreement demonstrates what can be accomplished when government works collaboratively with business to lift up workers and help employers not only meet their responsibilities, but better their environments for their workforce. We appreciate Bank of America’s quick efforts in establishing a companywide lactation break procedure, and we’re proud to announce this agreement today as we look forward to observing Breastfeeding Awareness Month.”

Federal law requires employers to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the child’s birth each time such employee has need to express the milk (Section 7 of the FLSA). Employers are also required to provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk.

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, Nursing Mothers Provisions and other laws enforced by the Wage and Hour Division, contact the 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 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
August 6, 2020
Release Number
20-1459-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Grant Vaught
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U.S. Department of Labor to Offer Online Prevailing Wage Seminars In September for Employers, Workers and Other Stakeholders

News Release

U.S. Department of Labor to Offer Online Prevailing Wage Seminars In September for Employers, Workers and Other Stakeholders

WASHINGTON, DC – The U.S. Department of Labor’s Wage and Hour Division (WHD) announced today that it is offering online seminars in September to provide compliance assistance on the legal requirements to pay prevailing wages on federal and federally funded contracts for contracting agencies, contractors, unions, workers and other stakeholders. The events are part of an ongoing effort to raise awareness among and improve compliance by employers with federal and federally funded contracts.

The multi-part seminars will offer participants self-paced learning with video overviews of topics such as the Davis-Bacon and Related Acts (DBRA) and the McNamara-O’Hara Service Contract Act (SCA), followed by live question-and-answer sessions with WHD representatives who will respond to questions and lead discussions on relevant topics. Interested participants should register in advance and complete the self-paced portion of the training before attending a live session. Attendance is free, but registration is required.

“The U.S. Department of Labor’s Wage and Hour Division is committed to providing useful information to help employers understand their legal responsibilities as federal contractors to pay prevailing wages and ensure workers are paid the wages they’ve earned,” said Wage and Hour Division Administrator Cheryl Stanton. “These seminars give us the opportunity to reach a large number of stakeholders in an effective manner. We encourage employers and other stakeholders to participate in these events and to use our many tools on wage and hour compliance.”

WHD will offer the live portion of the DBRA seminar on prevailing wage requirements on federal and federally funded construction contracts from 2 p.m. to 3:30 p.m. EDT on Sept. 9 and 15, 2020. Register for one of these sessions.

The live portion of the SCA seminar on prevailing wage requirements for contractors performing services on federal contracts will be from 2 p.m. to 3:30 p.m. EDT on Sept. 10 and 16, 2020. Register for one of these sessions.

For more information on the Davis-Bacon Act, the Service Contract Act and other federal wage laws related to government contracts administered by the WHD, please call the Department’s toll-free helpline at 1-866-4US-WAGE (487-9243) or visit the WHD website at 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 and Related Acts and the Service Contract Act and other laws 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
August 4, 2020
Release Number
20-1435-NAT
Media Contact: Grant Vaught
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El Paso Independent School District Pays Back Wages to Employee Wrongly Denied Paid Sick Leave After Healthcare Provider Ordered Self-Quarantine

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El Paso Independent School District Pays Back Wages to Employee Wrongly Denied Paid Sick Leave After Healthcare Provider Ordered Self-Quarantine

EL PASO, TX – El Paso Independent School District has paid $2,139 in back wages to an employee after the U.S. Department of Labor’s Wage and Hour Division (WHD) determined the employer wrongly denied emergency paid sick leave to an employee whose healthcare providers ordered them to self-quarantine for two weeks for reasons related to the coronavirus.  

WHD found the school district violated the Emergency Paid Sick Leave Act (EPSLA) provisions of the Families First Coronavirus Response Act (FFCRA). The FFCRA allows employees to take leave when a healthcare provider advises the employee to self-quarantine or while experiencing coronavirus symptoms and seeking a medical diagnosis.

El Paso Independent School District cooperated fully when contacted by WHD, and once it understood its responsibility under the new law, agreed to pay the employee’s full wages for the days the employee was unable to work. The employer agreed to future compliance with the FFCRA, which took effect on April 1, 2020.

“Employers must be fully aware of how to comply with the Families First Coronavirus Response Act and provide employees paid sick leave to care for themselves and family members when required. We appreciate the employer’s cooperation in this case,” said Wage and Hour District Director Evelyn Sanchez in Albuquerque, New Mexico. “The U.S. Department of Labor continues to protect employees and educate employers during the coronavirus pandemic. We encourage employers and employees to contact us for assistance to improve their understanding of new requirements under the FFCRA, and to use our educational online tools to avoid violations like those found in this case.”

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 wages 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.

The department offers an online webinar to inform employers of their responsibility under the FFCRA at https://dolwhd.cosocloud.com/pm4jvdnb4sch/.

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 27, 2020
Release Number
20-1253-DAL
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Secures Default Judgment Ordering Puerto Rico Security Companies to Pay $942,127 in Back Wages, Damages, and Penalties

News Release

U.S. Department of Labor Secures Default Judgment Ordering Puerto Rico Security Companies to Pay $942,127 in Back Wages, Damages, and Penalties

SAN JUAN, PR – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) and litigation by the Department’s Office of the Solicitor, the U.S. District Court for the District of Puerto Rico has entered a default judgment ordering a group of four interrelated Puerto Rico security guard companies and their principals to pay a total of $715,685 in back wages and damages to 400 employees for their willful violations of the Fair Labor Standards Act (FLSA).

The court found that the defendants – Evolution Quality Guard Inc., E.Q.G. Protection Agency & Order Corp.; Excellent Quality Guard Corp.; Excellent Quality Guard Services Inc.; Orlando Merced Morales; and Joel Velazquez Cruz – were joint employers and erroneously classified security guard employees as independent contractors, resulting in their failure to pay minimum wage and overtime required by the FLSA. In addition, the court ordered E.Q.G. Protection Agency & Order Corp., Orlando Merced Morales and Joel Velazquez Cruz to pay $226,442 in civil money penalties.

The court found that that the employers failed to pay any wages to 51 security guard employees, resulting in minimum wage violations; and paid only straight time without required overtime payment to 394 guards who worked more than 40 hours in a workweek. The court further concluded that the employers created false time records and provided those falsified records to the U.S. Department of Labor’s Wage and Hour Division (WHD) during its investigation, in addition to failing to maintain accurate and complete payroll records. 

This case was WHD’s second investigation of the employers. After the employers refused to comply with the FLSA and refused to pay the back wages due under the law, the Department’s Office of the Solicitor filed a complaint against the defendants. After the defendants failed to comply with the court’s orders, the court entered a judgment and order for the total amount of back wages and liquidated damages owed to the employees. It further ordered the defendants to pay $226,442 in civil money penalties and enjoined the defendants from further FLSA violations.

“The U.S. Department of Labor took this legal action to make certain the employers comply with the Fair Labor Standards Act,” said Solicitor of Labor Kate O’Scannlain. “The Department will continue to ensure that employees are paid all the wages they have rightfully earned.”

“Employers must pay all the wages legally earned by their employees,” said Wage and Hour Division Administrator Cheryl Stanton. “The Department will continue to assist employers in meeting their legal obligations, and ensure that employees are kept whole.”

“Employees must be paid all of the wages they have legally earned,” said Wage and Hour District Director José R. Vázquez in Guaynabo, Puerto Rico. “We provide multiple tools to help employers understand their responsibilities, and offer confidential compliance assistance to anyone with questions about how to comply with the law.”

“This case demonstrates that the U.S. Department of Labor will use all enforcement tools available to ensure employees receive the wages they have earned, and that employers compete on a level playing field,” said the Department’s Regional Solicitor Jeffrey S. Rogoff in New York, New York. “Employers cannot evade the requirements of the law by creating fake records, misclassifying employees and transferring their operations and employees from one company to the next.”

WHD’s Caribbean District Office conducted the investigation. Senior Trial Attorney Amy Tai of the New York regional solicitor's office litigated the case for the Department.

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.

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.

Scalia v. Evolution Quality Guard, Inc., E.Q.G. Protection Agency & Order Corp.; Excellent Quality Guard Corp.; Excellent Quality Guard Services Inc.; Orlando Merced Morales and Joel Velazquez Cruz.

Civil Action Number:  17-1210 (RAM).

Agency
Wage and Hour Division
Date
July 20, 2020
Release Number
20-1196-NEW
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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Federal Contractor on Idaho Bridge Project Pays $92,290 in Back Wages After U.S. Department of Labor Finds Prevailing Wage Violations

News Release

Federal Contractor on Idaho Bridge Project Pays $92,290 in Back Wages After U.S. Department of Labor Finds Prevailing Wage Violations

IDAHO FALLS, IDAHO – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), JM Concrete Inc. – based in Idaho Falls, Idaho – has paid $92,290 in back wages to 27 employees for violating prevailing wage requirements on the Lorenzo Bridge Rehabilitation project on State Highway 20 in Jefferson and Madison counties.

WHD investigators found that JM Concrete Inc. violated the Davis-Bacon Act when the employer failed to pay required prevailing wages and fringe benefits to the project’s carpenters, truck drivers, power equipment operators and general laborers. The employer also failed to pay workers weekly as the law requires.

“The U.S. Department of Labor’s Wage and Hour Division is committed to ensuring that workers receive all the wages they have legally earned, especially in these unprecedented times,” said the Wage and Hour Division’s Regional Administrator Ruben Rosalez, in San Francisco, California. “This investigation sends a strong message that the Wage and Hour Division will actively protect workers’ rights and level the playing field for employers. We encourage employers to reach out to us and to use the many tools we provide to help them understand their responsibilities. Employers can avoid violations like those found in this case.”

JM Concrete works on commercial and federal government contracts. The $1.8 million Lorenzo Bridge project included the replacement of a bridge deck’s top layer and approach slabs, curb repairs, metal rail replacement and fixing cracks in abutments, piers and girders. Funded by a grant from the Federal Highway Administration, the State of Idaho Transportation Department administered the grant.

The Davis-Bacon and Related Acts apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Under the act, contractors and subcontractors must pay their laborers employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area.

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 laws enforced by the Wage and Hour Division, contact the 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 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
July 20, 2020
Release Number
20-1330-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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