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

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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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Orlando Restaurant Pays $30,878 in Back Wages After U.S. Department of Labor Investigation Finds Violations

News Release

Orlando Restaurant Pays $30,878 in Back Wages After U.S. Department of Labor Investigation Finds Violations

ORLANDO, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Santos Burgos Corp. – operating as Guavate Restaurant in Orlando, Florida – has paid $30,878 in back wages to 42 employees for violating the minimum wage, overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

Investigators found Santos Burgos Corp. violated the requirements of the FLSA when they paid workers straight time rates for all the hours that they worked, resulting in overtime violations when employees worked more than 40 hours in a week and the employer did not pay overtime. The employer violated minimum wage requirements by failing to provide two employees their final paychecks, resulting in employees not being paid for worked hours. In addition, Santos Burgos Corp. failed to keep accurate payroll records for all employees.

“When employers fail to pay required overtime, they deny workers their earnings and put their law-abiding competitors at an economic disadvantage,” said Wage and Hour District Director Wildalí De Jesús, in Orlando, Florida. “The Wage and Hour Division is available to help employers understand their obligations and avoid violations. We invite anyone with questions to contact us for assistance.”

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 WHD, 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
June 26, 2020
Release Number
20-516-ATL
Media Contact: Eric R. Lucero
Phone Number
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Iowa McDonald’s Franchise Pays Employee Back Wages After Wrongly Denying Paid Leave Due to Coronavirus-Related School Closure

News Release

Iowa McDonald’s Franchise Pays Employee Back Wages After Wrongly Denying Paid Leave Due to Coronavirus-Related School Closure

ONAWA, IA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Kastim Corp. – operator of a McDonald’s franchise in Onawa, Iowa – has paid an employee $573 in back wages for wrongly denying the worker’s request for paid leave to care for children due to school closures related to the coronavirus pandemic.

WHD investigators found Kastim Corp. violated the Emergency Family Medical Leave Extension Act provisions of the Families First Coronavirus Response Act (FFCRA) when it denied the employee paid time away from work to care for children whose school had closed due to the coronavirus. When advised of its obligations under the FFCRA, the company agreed to pay the back wages.

“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 District Director Marcy Boldman, in Des Moines, Iowa. “The U.S. Department of Labor is working to protect employees’ rights and educate employers during the coronavirus pandemic. With thousands of parents returning to work while many schools remain closed, employers should use this case as an opportunity to review their obligations under this new law to avoid similar violations and ensure that they provide the benefits and protections required.”

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

The FFCRA helps the U.S. combat and defeat the workplace effects of the coronavirus by giving tax credits to American businesses with fewer than 500 employees either to provide employees with paid leave for the employee’s own health needs or to care for family members. 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 keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus. 

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

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

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

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

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

# # #

Agency
Wage and Hour Division
Date
June 26, 2020
Release Number
20-1273-KAN
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Issues Guidance on Child Labor; Paid Sick And Expanded Family and Medical Leave Amid School and Camp Closures

News Release

U.S. Department of Labor Issues Guidance on Child Labor; Paid Sick And Expanded Family and Medical Leave Amid School and Camp Closures

WASHINGTON, DC – With school and summer activity schedules greatly altered as America continues to re-open in the wake of the coronavirus, the U.S. Department of Labor’s Wage and Hour Division (WHD) today issued two Field Assistance Bulletins to clarify issues relevant to the pandemic’s effects on the workplace.

The bulletins issued today specifically address the following:

  • The assessment of when schools that are physically closed for coronavirus related reasons are considered “in session” for purposes of federal child labor requirements, and
  • Paid sick or expanded family and medical leave eligibility under the Families First Coronavirus Response Act (FFCRA) based on the closure of summer camps, summer enrichment programs, or other summer programs.

“As workers and employers deal with the effects of the coronavirus pandemic in the workplace, the U.S. Department of Labor’s priorities include ensuring our response provides the support and information they need,” said Wage and Hour Division Administrator Cheryl Stanton. “The guidance provided to our field offices in these bulletins, which we are sharing publicly, clarifies some unique issues surrounding the reality of distance and virtual learning and the transition from school to summer child care. We will continue to provide guidance as new situations and issues arise.”

Field Assistance Bulletin 2020-3 clarifies how child labor laws under the Fair Labor Standards Act (FLSA) apply to the employment of children when schools are in session while physically closed due to the coronavirus pandemic. In general, school is in session if the local public school district requires students to participate in virtual or distance learning, even if schools in the district are physically closed.

Field Assistance Bulletin 2020-4 provides guidance on when an employee qualifies to take paid leave under the FFCRA to care for his or her child based on the closure of a summer camp, summer enrichment program or other summer program for coronavirus-related reasons.

The law enables employers to provide their workers with paid leave, 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.  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 specified 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.

For more information about the laws enforced by the WHD, call 866-4US-WAGE, or visit 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 emergency 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
June 26, 2020
Release Number
20-1261-NAT
Media Contact: Grant Vaught
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Florida Stable Pays $65,807 in Wages, Penalties After Investigation By U.S. Department of Labor Finds H-2B Visa Program Violations

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Florida Stable Pays $65,807 in Wages, Penalties After Investigation By U.S. Department of Labor Finds H-2B Visa Program Violations

OCALA, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Eddie Woods Stables – a horse training center in Ocala, Florida – has paid $26,514 in wages to 42 employees for violating labor provisions of the H-2B visa program. The company also paid a $39,293 civil penalty that the department accessed.

Investigators determined that Eddie Woods Stables failed to apply the offered terms and conditions of the job to all employees equally, advertising a stable attendant position at 40 hours per week to American applicants when the employer, in fact, intended the selected employees to work 48 hours per week. In addition, the employer advertised the job to U.S. workers at the locally prevailing wage rate, as required, but paid the selected foreign workers at a higher rate. Advertising the job at a lower rate that would actually be paid could produce a chilling effect on the number of U.S. applicants.

Investigators also found the employer failed to reimburse H-2B workers for the cost of their transportation from their home countries to the worksite by the halfway point of the contract period, as required.

“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 District Director Wildalí De Jesús, in Orlando, Florida. “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.”

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 H-2B Visa Program and other laws enforced by WHD, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243), or visit the division’s website, which offers 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.

Agency
Wage and Hour Division
Date
June 25, 2020
Release Number
20-491-ATL
Media Contact: Eric R. Lucero
Phone Number
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Court Orders Hudson Valley, New York, Convenience Stores and Owners To Pay $400,301 After U.S. Department of Labor Investigation, Litigation

News Release

Court Orders Hudson Valley, New York, Convenience Stores and Owners To Pay $400,301 After U.S. Department of Labor Investigation, Litigation

NEW YORK, NY – 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 Southern District of New York has entered a consent judgment requiring a group of commonly owned convenience stores in New York’s Hudson Valley and its owners to pay a total of $371,439 in back wages and liquidated damages to 45 current and former employees. The defendants must also pay $28,861 in civil money penalties.

WHD found that Broadway Mart Corp., LJR Singh Corp., B&J Singh Corp., Jessica 2558 Inc., Brenda 52 Food Mart Inc., and owners Bachan and Brenda Singh willfully violated the minimum wage, overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

Investigators found cashiers at the defendants’ stores routinely worked between 60 and 84 hours per week while the employer paid them straight-time rates for all of their hours, with no overtime when they worked more than  40 hours per workweek. The defendants violated the FLSA’s minimum wage requirements by failing to pay one employee wages for his last week of work. They also violated recordkeeping requirements by underreporting the number of hours worked by employees and falsely stating that they paid employees overtime.

In addition to paying the back wages and liquidated damages, the defendants have also agreed to install electronic time-keeping devices in each of defendants’ stores. In previous investigations, WHD found four of the five corporate defendants similarly violated FLSA overtime and recordkeeping violations, for which they paid about $196,000 in back wages.

“The U.S. Department of Labor’s Wage and Hour Division will investigate and, when it finds violations, hold employers accountable to ensure they pay workers the wages they have rightfully earned,” said Wage and Hour Division District Director Jay Rosenblum in Albany, New York. “We strongly encourage employers to contact us for information on how to comply and avoid costly violations.”

“Employers that underpay their employees put employers that obey the law at an economic disadvantage. The U.S. Department of Labor will pursue appropriate legal actions to ensure proper payment to employees and a fair and level playing field for employers,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York City.

The defendants’ stores are located in Newburgh, Fishkill, Middletown, New Windsor, Pine Bush and Wappingers Falls, New York.

WHD’s Albany District Office conducted the investigation. Attorney Allison L. Bowles of the regional Office of the Solicitor litigated 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 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, 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. Broadway Mart Corp., LJR Singh Corp., B&J Singh Corp., Jessica 2558, Inc., Brenda 52 Food Mart, Inc., and Bachan and Brenda Singh

Civil Action Number:  20-cv-03237-NSR

 

 

Agency
Wage and Hour Division
Date
June 25, 2020
Release Number
20-9-NEW
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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