U.S. Department of Labor Secures $1,149,965 in Back Wages In Bankruptcy Court for Hair Salon Workers in 15 States

News Release

U.S. Department of Labor Secures $1,149,965 in Back Wages In Bankruptcy Court for Hair Salon Workers in 15 States

VIENNA, VA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the U.S. Bankruptcy Court for the District of Maryland has ordered Creative Hairdressers Inc. – an operator of unisex hair salons in 15 states and the District of Columbia – to pay $1,149,965 in back wages to more than 7,500 employees.

The court’s action comes after WHD investigators found Creative Hairdressers Inc. – doing business as Hair Cuttery, BUBBLES The Color Salon, Salon Cielo and Salon Plaza – closed all of its 750 salon locations on March 21, 2020, amid the coronavirus health crisis and failed to pay their employees’ final paychecks. By doing so, the employer violated the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA) and affected more than 7,500 employees. Creative Hairdressers Inc. filed Chapter 11 bankruptcy subsequently, and was purchased by another company. 

Once it learned of Creative Hairdressers Inc.’s failure to pay their employees and of the employer’s bankruptcy filing, the department sought to be included in the bankruptcy proceedings. As a result, the department secured back wages for employees in Connecticut, Delaware, Florida, Illinois, Indiana, Maryland, Massachusetts, New Hampshire, New Jersey, North Carolina, Pennsylvania, Rhode Island, Virginia, Washington, D.C., West Virginia and Wisconsin.

“While the employer’s violations were not found to be willful, its employees are among the thousands of personal service workers in America whose livelihoods have been dramatically affected by the coronavirus pandemic,” said Cheryl Stanton, Wage and Hour Division Administrator. “Like many workers, these employees depend on their paychecks to meet their basic living expenses. Even in these unprecedented times, the U.S. Department of Labor’s Wage and Hour Division is committed to ensuring that workers receive their hard-earned wages.”

In addition to the back wages, the court ordered Creative Hairdressers Inc. to pay an approximate total of $3,100,000 to satisfy state minimum wages, 401(k) contributions, bonus program payments and applicable employment-related taxes.

“The U.S. Department of Labor’s Wage and Hour Division and Office of the Solicitor intervened during bankruptcy proceedings to hold the employer legally accountable for paying owed wages,” said Regional Solicitor Oscar L. Hampton III, Region III’s Office of the Regional Solicitor. “This case serves as a strong signal that the department is working to protect the rights of employees significantly impacted during the coronavirus pandemic.”

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/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
May 11, 2020
Release Number
20-844-NAT
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
Share This

U.S. Department of Labor Ends Temporary Non-Enforcement of Paid Leave Protections to Help American Workers During Coronavirus Pandemic

News Release

U.S. Department of Labor Ends Temporary Non-Enforcement of Paid Leave Protections to Help American Workers During Coronavirus Pandemic

WASHINGTON, DC The U.S. Department of Labor announced today the end of the temporary period of non-enforcement of paid leave protections under the Families First Coronavirus Response Act (FFCRA).

The non-enforcement period allowed the department’s Wage and Hour Division (WHD) to offer extensive guidance and education about the law’s requirements, which aided American workers and enabled employers covered by the new law to come into compliance as the nation continues to battle the coronavirus pandemic.

“With millions of Americans eligible for new and expanded leave programs, the U.S. Department of Labor is working tirelessly to answer the public’s questions and conduct outreach to groups and individuals so that employers nationwide provide employees with the benefits they need,” said Wage and Hour Division Administrator Cheryl Stanton. “We have taken hundreds of complaints and are working to resolve them as soon as possible.”

To resolve issues that have arisen with providing FFCRA-required leave, WHD has explained employers’ obligations and has assisted employers with getting money into the hands of workers. Educational outreach efforts will continue as enforcement begins in order to ensure compliance with the law and to maximize its benefits for workers and employers alike.

FFCRA helps combat the workplace effects of the coronavirus by reimbursing America’s private employers with fewer than 500 employees with tax credits for the cost of providing employees with paid leave for specified reasons related to the coronavirus. The law enables employers to keep their workers on their payrolls, while at the same time ensuring that workers do not have to choose between their paychecks and the public health measures needed to combat the virus.

WHD offers extensive plain-language guidance on the requirements of the law, including Questions and Answers, a Fact Sheet for Employees and a Fact Sheet for Employers, available in both English and Spanish, required workplace posters for employers, and an in-depth FFCRA Webinar.

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 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 the WHD, call 866-4US-WAGE, or visit www.dol.gov/agencies/whd

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

 

 

Agency
Wage and Hour Division
Date
April 20, 2020
Release Number
20-651-NAT
Media Contact: Emily Weeks
Phone Number
Share This

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

News Release

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

WASHINGTON, DC – The U.S. Department of Labor today announced that the department’s Wage and Hour Division (WHD) is hiring 45 additional investigators to conduct investigations to determine employers’ compliance with applicable federal labor laws.

New recruits will join a busy and productive team, including 45 new investigators and 15 Wage and Hour Technicians the hired earlier this year.

“Now more than ever, the Wage and Hour Division is on the forefront of helping America’s workers and employers as we find our path forward in these uncertain times. In addition to enforcing long-standing wage and family leave laws, WHD now enforces the paid sick leave and expanded family and medical leave protections provided by the Families First Coronavirus Response Act,” said WHD Administrator Cheryl Stanton. “With more than 60 million workers eligible for relief, our team continues to deliver when the workforce needs us most. We anticipate adding even more staff throughout the year.”

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 outreach events to educate employers and workers alike about their workplace rights and responsibilities.

The department encourages applicants to visit https://www.usajobs.gov to review the job announcements and to apply.

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
April 7, 2020
Release Number
20-585-NAT
Media Contact: Emily Weeks
Phone Number
Share This

U.S. Department Of Labor Adds To Guidance for Workers and Employers Explaining Paid Sick Leave and Expanded Family and Medical Leave Benefits Under the Families First Coronavirus Response Act

News Release

U.S. Department Of Labor Adds To Guidance for Workers and Employers Explaining Paid Sick Leave and Expanded Family and Medical Leave Benefits Under the Families First Coronavirus Response Act

WASHINGTON, DC Today, the U.S. Department of Labor’s Wage and Hour Division (WHD) published more guidance to provide information to employees and employers about how each will be able to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) when it goes into effect on April 1, 2020.

The latest round of guidance includes questions and answers addressing critical issues such as the definition of a “health care provider,” and the scope of the small business exemption for purposes of exclusion from the provisions of the Emergency Paid Sick Leave Act and Emergency Family and Medical Leave Expansion Act, as well as whether public sector employees may take paid family and medical leave. In addition, WHD posted its two recently released posters and fact sheets in Spanish on its COVID-19 website.

This guidance adds to a growing list of compliance assistance materials published by WHD, including the English-language versions of a Fact Sheet for Employees, a Fact Sheet for Employers, and two new required posters—one for federal workers and one for all other employees, as well as Questions and Answers about posting requirements, and a Field Assistance Bulletin describing WHD’s 30-day non-enforcement policy.

“The response to the guidance we’ve published so far has illustrated the critical need that workers and employers have for this important information,” said Wage and Hour Division Administrator Cheryl Stanton. “This round includes some of the most common questions we are receiving and will help ensure that the American workforce has all the tools and information needed in these very trying times. We encourage everyone to check the Wage and Hour Division website frequently, as we continue to add guidance to help everyone understand what they are entitled to as we prepare for these vital new benefits to go into effect on April 1, 2020.”

FFCRA will help the United States combat and defeat COVID-19 by offering all American businesses with fewer than 500 employees tax credits to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their employees on their payrolls, while at the same time ensuring that employees 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 COVID-19, and its effects on wages and hours worked under the Fair Labor Standards Act and 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 the WHD, call 866-4US-WAGE, or visit www.dol.gov/agencies/whd.

For further information about COVID-19, please visit the U.S. Department of Health and Human Services’ 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 FLSA. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the FMLA, 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
March 28, 2020
Release Number
20-546-NAT
Media Contact: Department of Labor National Contact Center
Share This

U.S. Department Of Labor Publishes More Guidance for Workers and Employers Explaining Paid Sick Leave, Expanded Family and Medical Leave Benefits

News Release

U.S. Department Of Labor Publishes More Guidance for Workers and Employers Explaining Paid Sick Leave, Expanded Family and Medical Leave Benefits

WASHINGTON, DC Today, the U.S. Department of Labor’s Wage and Hour Division (WHD) announced more guidance to provide information to workers and employers about how each will be able to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) when it takes effect on April 1, 2020.

The new guidance includes questions and answers addressing critical issues such as what documents employees can be required to submit to their employers to use paid sick leave or expanded family and medical leave; whether workers can take paid sick leave intermittently while teleworking and whether workers whose employers closed before the effective date of the FFCRA can still get paid sick leave.

This guidance adds to a growing list of compliance assistance materials published by WHD, including a Fact Sheet for Employees, a Fact Sheet for Employers, and an earlier Questions and Answers document. Available are two new posters, one for federal workers and one for all other employees, that will fulfill notice requirements for employers obligated to inform employees about their rights under this new law, Questions and Answers about posting requirements and a Field Assistance Bulletin describing WHD’s 30-day non-enforcement policy.

“The Wage and Hour Division is delivering necessary information so that American workers and employers can receive this much needed relief,” said Wage and Hour Division Administrator Cheryl Stanton. “We are working to ensure that workers and employers have the tools they need to maximize the benefits they are entitled to when this law goes into effect on April 1, 2020.”

FFCRA, signed by President Trump, offers American businesses with fewer than 500 employees tax credits as reimbursement for providing employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable 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 COVID-19 and its effects on wages and hours worked under the Fair Labor Standards Act and 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 the WHD, call 866-4US-WAGE, or visit https://www.dol.gov/agencies/whd.

For further information about COVID-19, please visit the U.S. Department of Health and Human Services’ 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 FLSA. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the FMLA, 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
March 27, 2020
Release Number
20-544-NAT
Media Contact: Department of Labor National Contact Center
Share This

U.S. Department of Labor Issues Three New Wage and Hour Opinion Letters

News Release

U.S. Department of Labor Issues Three New Wage and Hour Opinion Letters

WASHINGTON, DC – The U.S. Department of Labor today announced three new opinion letters that address compliance issues related to the Fair Labor Standards Act (FLSA). An opinion letter is an official, written opinion by the Department’s Wage and Hour Division (WHD) on how a particular law applies in specific circumstances presented by the person or entity that requested the letter.

The opinion letters issued today are:

  • FLSA2020-3: Addressing excludability of longevity payments from the regular rate of pay;
  • FLSA2020-4: Addressing excludability of referral bonuses from the regular rate of pay; and
  • FLSA2020-5: Addressing excludability of an employer’s contributions to a group term-life insurance policy from the regular rate of pay.

All three of the opinion letters published today provide further clarity on the department’s recently announced Final Rule on FLSA regular rate requirements, which allows employers to more easily offer perks and benefits to their employees.

The public can search for existing opinion letters by keyword, year, topic and a variety of other filters on the department’s website. The department also encourages the public to submit requests for opinion letters to WHD to obtain an opinion or to determine whether existing guidance already addresses their questions. The division exercises its discretion in determining whether and how it will respond to each request.

These are the 54th, 55th and 56th WHD opinion letters since Jan. 20, 2017.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping and child labor requirements of the FLSA. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the FMLA, 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
March 26, 2020
Release Number
20-384-NAT
Media Contact: Emily Weeks
Phone Number
Share This

U.S. Department Of Labor Announces Additional Guidance Explaining Paid Sick Leave and Expanded Family and Medical Leave Under The Families First Coronavirus Response Act

News Release

U.S. Department Of Labor Announces Additional Guidance Explaining Paid Sick Leave and Expanded Family and Medical Leave Under The Families First Coronavirus Response Act

WASHINGTON, DC – Today, the U.S. Department of Labor’s Wage and Hour Division (WHD) announced more guidance to provide information to workers and employers about how each will be able to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) when it takes effect on April 1, 2020.

The new guidance includes two new posters, one for federal workers and one for all other employees, that will fulfill notice requirements for employers obligated to inform employees about their rights under this new law. It also includes questions and answers about posting requirements, and a Field Assistance Bulletin describing WHD’s 30-day non-enforcement policy. The new guidance addresses critical issues such as whether employers may post required notice electronically, whether employers must provide notice of this law to recently laid-off individuals, when FFCRA applies to federal workers and when enforcement of the new rules will begin.

“The Wage and Hour Division continues to prioritize providing this vital information to workers and employers so that both are fully prepared to maximize the benefits available to them as quickly as possible when this law goes into effect on April 1, 2020,” said Wage and Hour Division Administrator Cheryl Stanton. “These critical protections will provide a lifeline to untold numbers of struggling families, and to countless employers trying to balance their business needs with the needs of their workers, their communities and their own families.”

FFCRA will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees tax credits to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable 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.

The guidance announced today augments information WHD published Tuesday, including a Fact Sheet for Employees, a Fact Sheet for Employers and a Questions and Answers document. Additional guidance is forthcoming.

WHD provides additional information on common issues employers and employees face when responding to COVID-19 and its effects on wages and hours worked under the Fair Labor Standards Act and 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 the WHD, call 866-4US-WAGE, or visit www.dol.gov/agencies/whd.

For further information about COVID-19, please visit the U.S. Department of Health and Human Services’ 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 U.S. 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
March 26, 2020
Release Number
20-523-NAT
Media Contact: Department of Labor National Contact Center
Share This

UPDATED: U.S. Department of Labor Invites Stakeholders to a National Online Dialogue on Paid Family and Medical Leave and Paid Sick Leave Under the Families First Coronavirus Response Act

News Release

UPDATED: U.S. Department of Labor Invites Stakeholders to a National Online Dialogue on Paid Family and Medical Leave and Paid Sick Leave Under the Families First Coronavirus Response Act

WASHINGTON, DC – The U.S. Department of Labor is hosting a national online dialogue, Providing Expanded Family and Medical Leave to Employees Affected by COVID-19, to help employers and workers understand their responsibilities and rights, respectively, under the Families First Coronavirus Response Act (FFCRA).

On March 18, 2020, the President signed into law the FFCRA, requiring certain employers to provide employees with paid family and medical leave or paid sick leave for specified reasons in response to COVID-19.

The department's Wage and Hour Division (WHD) will administer and enforce the paid leave provisions of the FFCRA. The provisions will apply from their effective date through Dec. 31, 2020.

Generally, the FFCRA provides that employees of covered employers are eligible for:

  • Two weeks (up to 80 hours) of paid sick time at the employee's regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to federal, state, or local government order or advice of a healthcare provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
  • Two weeks (up to 80 hours) of paid sick time at two-thirds the employee's regular rate of pay because the employee is unable to work because of a need to care for an individual subject to quarantine (pursuant to federal, state, or local government order or advice of a healthcare provider), or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Department of Health and Human Services; and
  • Up to an additional 10 weeks of paid family and medical leave at two-thirds the employee's regular rate of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.

This national online dialogue provides an opportunity for employers and workers to play a key role in shaping the development of the Department of Labor's compliance assistance materials and outreach strategies related to the implementation of FFCRA. WHD will use the ideas and comments gathered from this dialogue to develop compliance assistance guidance, resources and tools, as well as outreach approaches that assist employers and workers in understanding their responsibilities and rights under the paid leave provisions of the FFCRA.

The public, including employers, workers and their advocacy groups can participate in this national online dialogue through Sunday, March 29, 2020. This dialogue will also include a one-hour Twitter chat scheduled for Wednesday, March 25, 2020.

"This innovative national online dialogue seeks input from key stakeholders about the best ways we can help employers and workers understand their responsibilities and rights under the FFCRA in the wake of the COVID-19 pandemic," said Wage and Hour Division Administrator Cheryl Stanton. "It's an important discussion that will allow the Wage and Hour Division to develop compliance assistance materials that are responsive to the evolving needs of American employers and workers."

The department's Office of Compliance Initiatives (OCI), in partnership with WHD and the Office of Disability Employment Policy (ODEP), will host the online dialogue. ODEP's ePolicyWorks will facilitate the dialogue initiative. Please register to participate.

OCI is part of the department's Office of the Assistant Secretary for Policy. It aims to foster a compliance assistance culture within the department, complement its enforcement efforts and improve compliance assistance outreach. Through Worker.gov and Employer.gov, OCI provides information about worker rights and employer responsibilities.

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.

Ed. Note: Release updated to add correct link to register to participate in the ePolicyWorks dialogue initiative.

Agency
Wage and Hour Division
Date
March 25, 2020
Release Number
20-514-NAT
Media Contact: Megan Sweeney
Phone Number
Share This

U.S. Department of Labor Investigation Leads Court to Order North Carolina Restaurant to Pay $120,949 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Leads Court to Order North Carolina Restaurant to Pay $120,949 in Back Wages and Damages

CHARLOTTE, NC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the U.S. District Court for the Western District of North Carolina ordered Hot Taco LLC – a Charlotte, North Carolina, restaurant – to pay $120,949 in back wages and liquidated damages to 67 employees for minimum wage violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined Hot Taco LLC illegally required tipped employees to share tips with non-tipped employees such as kitchen staff. The mandatory tip-pooling arrangement did not meet FLSA requirements, and therefore the employer was not entitled to take a tip credit for the employees who were required to share tips with kitchen staff, resulting in back wages owed. Employers of tipped workers can, under certain circumstances, take credit for tips the employees receive toward their obligation to pay those workers the federal minimum wage of $7.25 per hour.

In addition to payment of back wages and liquidated damages, the court order permanently enjoined Hot Taco LLC from committing future FLSA violations.

“The employer’s failure to abide by the requirements of the Fair Labor Standards Act is a costly error, and one they might have avoided if they had contacted us for information about how to comply,” said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. “We encourage employers that have questions regarding tip credit rules or any other wage requirements to reach out to us to help them meet their obligations under the 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, 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 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/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
March 13, 2020
Release Number
20-375-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
Share This

U.S. Department of Labor Investigation Results in South Carolina Contractor Paying $43,663 in Back Wages, Damages for Overtime Violations

News Release

U.S. Department of Labor Investigation Results in South Carolina Contractor Paying $43,663 in Back Wages, Damages for Overtime Violations

LEXINGTON, SC After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Lucas Builders Inc. – based in Lexington, South Carolina – has paid $43,663 in back wages and liquidated damages to 15 employees for violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the residential construction company violated FLSA overtime requirements when the employer paid employees straight-time rates for all the hours that they worked. This practice resulted in violations when employees worked more than 40 hours in a workweek but were not paid overtime at time-and-one-half their regular rates of pay. Lucas Builders also misclassified some employees as independent contractors, and also failed to pay them overtime when they worked more than 40 hours in a workweek. The employer also failed to maintain accurate payroll records, in violation of the recordkeeping requirements of the FLSA.

“Employers must pay employees all of the wages they have earned for all of the hours they have worked, including overtime, when applicable,” said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. “Employers must fully understand their responsibilities under the Fair Labor Standards Act. We encourage employers and employees alike to call our offices to speak directly with trained Wage and Hour professionals and ask any questions they may have. Violations like those in this case can be avoided.”

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

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

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
March 13, 2020
Release Number
20-351-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
Share This
Subscribe to Wages