North Carolina Manufacturer Pays $120,567 in Back Wages, Damages After U.S. Department of Labor Investigation Finds Overtime Violations

News Release

North Carolina Manufacturer Pays $120,567 in Back Wages, Damages After U.S. Department of Labor Investigation Finds Overtime Violations

RANDLEMAN, NCAfter an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Butler Trailer Manufacturing Co. – based in Randleman, North Carolina – has paid $120,567 in back wages and liquidated damages to 40 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the cable and equipment transport trailer manufacturer paid employees straight time rates for all the hours that they worked, failing to pay them overtime when they worked more than 40 hours in a workweek.

“Companies must meet their legal obligation to pay their employees the wages they have earned, including paying overtime for hours worked over 40 in a workweek,” said Wage and Hour District Director Richard Blaylock, in Raleigh, North Carolina. “We encourage employers to contact us with any questions they may have, and to use the variety of tools we offer to help them understand their obligations and to comply with the law. Costly violations like these 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
20-346-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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Atlanta-Area Restaurant Operator to Pay $411,010 to 157 Employees After Investigation Finds Minimum Wage, Overtime Violations

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Atlanta-Area Restaurant Operator to Pay $411,010 to 157 Employees After Investigation Finds Minimum Wage, Overtime Violations

DORAVILLE, GA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the operator of an Atlanta-area restaurant enterprise will pay $411,010 in back wages to 157 employees at locations in Doraville and Duluth, Georgia, for violating minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found La Abuela LLC in Doraville, and La Abuela II LLC, La Abuela III LLC and La Abuela IV LLC in Duluth – incorrectly classified employees as independent contractors, leading to numerous violations. The restaurant operator violated FLSA overtime requirements by paying straight-time rates for all the hours employees worked, failing to pay overtime when they worked more than 40 hours in a workweek. The employer also failed to combine hours employees worked between multiple establishments owned by the business in a single workweek when determining whether overtime was due.

Additional violations resulted from the employer's practice of requiring tipped employees to perform cleaning tasks off the clock, failing to record or pay for that time. The employer also made illegal deductions from tipped employees' pay to account for incorrect orders and customer walkouts, resulting in FLSA violations when the deductions caused the employees' hourly wages to fall below the federal minimum wage. In addition, the employer violated FLSA recordkeeping requirements when it failed to record all the hours employees worked, deductions it made from employees' pay, and the amounts of cash tips claimed by tipped employees.

"Employers must ensure that their employees are paid all the wages they have legally earned. This includes combining their hours when they work across multiple establishments and paying overtime when due," said Wage and Hour Division Acting District Director Derrick Witherspoon, in Atlanta, Georgia. "This case serves as an excellent reminder for restaurant employers to review their pay practices so that they can avoid costly violations like those found in this investigation."

WHD found the violations at the following Georgia locations:

Violations

Legal Name

Operating As

Location

La Abuela LLC

Las Delicias de la Abuela

5600 Buford Highway NE, Doraville

La Abuela II LLC

Riko Pollo by La Abuela

1630 Pleasant Hill Road, Suite 240, Duluth

La Abuela III LLC

Crepes y Fresas

1630 Pleasant Hill Road, Suite 260, Duluth

La Abuela IV LLC

Las Delicias de la Abuela

1630 Pleasant Hill Road, Suite 270, Duluth

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
20-357-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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Houston Restaurants Pay $150,000 to Resolve Federal Minimum Wage, Overtime Violations After U.S. Department of Labor Investigation

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Houston Restaurants Pay $150,000 to Resolve Federal Minimum Wage, Overtime Violations After U.S. Department of Labor Investigation

HOUSTON, TX – After investigations by the U.S. Department of Labor’s Wage and Hour Division (WHD), Ryuko International LLC and Izakaya WA-River Oaks – both doing business as Izakaya WA in Houston, Texas – have paid $150,371 in back wages to 18 employees to resolve minimum wage and overtime violations of the Fair Labor Standards Act (FLSA).

Investigators found that the restaurants operated an invalid tip pooling arrangement that included non-tipped workers such as cooks and dishwashers in the distribution of tips earned by wait staff.  That violation negated the employer’s ability to pay servers a tipped-worker minimum wage and claim what is known as a “tip credit,” a credit for tips earned by a tipped employee toward the employer’s obligation to pay that worker the full federal minimum wage. Absent this tip credit, Izakaya WA-River Oaks owed tipped employees the full federal minimum wage of $7.25 per hour and the corresponding overtime. The employer had paid wait staff the federal tipped employee minimum wage of $2.13 per hour. WHD also cited the employer for recordkeeping violations.

“Restaurant staff often work long, hard hours and must be paid every dollar they legally earn,” said Wage and Hour Division District Director Robin Mallett in Houston, Texas. “We encourage employers to contact us for assistance in understanding their responsibilities so that they can avoid violations like those found in this case. We offer a wide variety of tools to explain their responsibilities.”

The law’s requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips, such as waiters, waitresses, bellhops, counter personnel (who serve customers), bussers and service bartenders. A valid tip pool may not include employees who do not customarily and regularly receive tips, such as dishwashers, cooks, chefs and janitors.

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 who 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.

Read this news release En Español

Agency
Wage and Hour Division
Date
March 12, 2020
Release Number
20-263-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Landscape Contractor Pays Back Wages, Penalties for H-2B, Overtime Violations Found in U.S. Department of Labor Investigations

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Landscape Contractor Pays Back Wages, Penalties for H-2B, Overtime Violations Found in U.S. Department of Labor Investigations

KATY, TX After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Terry’s Landscape LLC – based in Katy, Texas – has paid $5,165 in back wages and $20,399 in civil money penalties to settle H-2B non-immigrant visa program violations and $6,472 in back wages for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

Investigators found Terry’s Landscape LLC violated provisions of the H-2B nonimmigrant visa program requiring non-discriminatory hiring practices when the employer failed to accept referrals of potential U.S. workers up to 21 days before their stated period of need for guest workers. Additionally, the employer failed to reimburse H-2B workers for travel expenses from their home countries, as required. The investigation also found the employer failed to comply with the requirement to notify U.S. Citizenship and Immigration Services and Office of Foreign Labor Certification when H-2B workers abandoned or terminated employment prior to the time period in the workers’ agreements. Terry’s Landscape LLC violated FLSA overtime requirements when it paid foremen flat rates per day, without regard to the number of hours that they worked. This practice resulted in violations when those employees worked more than 40 hours in a workweek, but were not paid overtime.

“The U.S. Department of Labor will continue to enforce the laws to ensure employers satisfy their obligations under temporary employment certifications, and will work diligently to prevent any practice that prefers foreign workers over qualified local candidates,” said Wage and Hour Division District Director Robin Mallett, in Houston, Texas. “The Department is committed to safeguarding American jobs and leveling the playing field for employers who obey 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, electronic toolkits or in-person visits with local WHD staff.

The H-2B nonimmigrant program permits employers to temporarily hire nonimmigrants to perform nonagricultural labor or services in the U.S. The employment must be of a temporary nature for a limited period of time such as a one-time occurrence, seasonal need, peak load or intermittent need. The H-2B program requires the employer to attest to the department that it will offer a wage that equals or exceeds the highest of the prevailing wage, applicable federal minimum wage, the state minimum wage, or local minimum wage to the H-2B nonimmigrant worker for the occupation in the area of intended employment during the entire period of the approved H-2B labor certification.

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/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.

Read this news release En Español

Agency
Wage and Hour Division
Date
March 11, 2020
Release Number
20-70-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Finds Florida-based Farm Labor Contractor Violated Guest Worker Visa Requirements at 5 North Carolina Farms

News Release

U.S. Department of Labor Finds Florida-based Farm Labor Contractor Violated Guest Worker Visa Requirements at 5 North Carolina Farms

RALEIGH, NC – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, SBHLP Inc. – a Lake Placid, Florida-based H-2A labor contractor that supplied workers for five North Carolina farms – is required to pay $224,249 in wages to 194 employees for violating requirements of the H-2A visa program. The department also assessed the employer a $239,430 civil penalty and debarred the labor contractor for 3 years.

WHD investigators determined SBHLP Inc. and owner Salvador Barajas failed to provide workers at least three meals per day, as per the work order. The employer also failed to reimburse the H-2A workers for their 2018 outbound travel expenses and did not pay for their 2019 inbound travel expenses after they completed 50 percent of their contract, as the law requires.

Investigators also found that the employer collected money from the workers to cover charter bus inbound transportation and required each worker to pay their own visa and border fees while traveling from Mexico to the U.S., all violations under the federal visa program.

“Agricultural labor contractors must ensure they comply with all the requirements of the H-2A visa program,” said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. “Employers that violate the H-2A visa program’s provisions create unfair advantages over other H-2A employers. The Wage and Hour Division remains committed to protecting workers and maintaining a level playing field for other employers.”

SBHLP Inc. provided H-2A employees to work on the following North Carolina farms:

  • OJ Smith Farms Farm in Whitakers;
  • Kent Smith in Rocky Mount;
  • Greenleaf Nursery in Tarboro;
  • Bailey Brothers in Bailey; and
  • Bass Farm in Nashville.

The department offers numerous resources to ensure employers have the tools they need to understand their responsibilities to comply with federal law and employees are aware of their rights under the law, such as online videos, confidential calls, or in-person trainings.

For more information about the H-2A visa program and other laws enforced by the division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/agencies/whd, including a search tool for workers who may be owed back wages collected by 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.

Read this news release En Español

Agency
Wage and Hour Division
Date
March 5, 2020
Release Number
20-394-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Investigation Finds Tennessee Landscaping Company Violated H-2B Visa Program Requirements

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U.S. Department of Labor Investigation Finds Tennessee Landscaping Company Violated H-2B Visa Program Requirements

ROCKVALE, TN – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Outdoors Unlimited Inc. – a landscaping company based in Rockvale, Tennessee – will pay $52,000 in back wages to 21 employees for violating labor provisions of the H-2B visa program. WHD also debarred the employer from participating in the H-2B temporary non-agricultural labor certification program for one year.

WHD determined that Outdoors Unlimited Inc. failed to record and pay employees for time they spent loading and unloading trucks for each day’s activities before and after their scheduled shifts. The employer also failed to pay for time workers spent traveling between job sites during the workday. This unpaid time resulted in overtime violations when the employees’ actual hours exceeded 40 in a workweek.

“Employers must ensure they understand and meet all of their obligations under the H-2B visa program,” said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. “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. 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). 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.

Agency
Wage and Hour Division
Date
March 4, 2020
Release Number
20-214-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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Sulphur, Louisiana, Contractor Pays $495,901 in Back Wages After U.S. Department of Labor Finds Overtime Violations

News Release

Sulphur, Louisiana, Contractor Pays $495,901 in Back Wages After U.S. Department of Labor Finds Overtime Violations

SULPHUR, LA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Versa Integrity Group Inc. – based in Sulphur, Louisiana – has paid $495,901 in back wages to 411 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA)

WHD investigators determined that the enterprise – which provides non-destructive testing services at 22 locations in Texas, Louisiana and Florida – erroneously classified wages as per diem payments to its employees who provide inspections, maintenance and repair services for industrial refining, chemical and offshore applications. The practice resulted in violations when the employer failed to include those amounts in employees’ regular rates of pay when calculating overtime. Excluding those amounts resulted in overtime being paid at rates lower than those required by law. This inaccuracy also violated FLSA recordkeeping requirements.

“Simply labeling a payment as ‘per diem’ does not necessarily exclude it from the calculation when determining  overtime rates,” said Wage and Hour Division District Director Troy Mouton, in New Orleans, Louisiana. “This investigation revealed a violation we find in many industries. The Wage and Hour Division remains committed to improving compliance with the Fair Labor Standards Act through a combination of education and enforcement, and encourages all employers to reach out to us confidentially with any questions about their obligations.”

Employers that discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/agencies/whd including a search tool for workers who may be owed back wages collected by the division.

The mission of WHD is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the 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 opportunites for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
March 3, 2020
Release Number
20-262-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Houston Contractor Pays Back Wages After U.S. Department of Labor Investigation Finds Overtime Violations

News Release

Houston Contractor Pays Back Wages After U.S. Department of Labor Investigation Finds Overtime Violations

HOUSTON, TX After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), D & V Painting Services – based in Houston, Texas – has paid $67,363 in back wages for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD found D & V Painting Services misclassified employees as independent contractors. As a result, the employer violated the FLSA when it failed to pay those employees overtime when they worked more than 40 hours in a workweek. The law requires employers to pay time-and-one-half an employee’s regular rate of pay for hours the employee works over 40. Additionally, the employer failed to maintain complete and accurate pay and time records as required by law.

“Misclassifying employees as independent contractors can result in employers paying workers less than they have legally earned, and can create an economic disadvantage for employers that play by the rules,” said Wage and Hour Division District Director Robin Mallett, in Houston, Texas. “This case should serve as a learning opportunity for other employers to review their pay practices to ensure they comply with federal law.”

Employers that discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/agencies/whd including a search tool for workers who may be owed back wages collected by the division.

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

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

Agency
Wage and Hour Division
Date
March 3, 2020
Release Number
20-268-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Announces Plan To Assist Federal Contractors’ Compliance

News Release

U.S. Department of Labor Announces Plan To Assist Federal Contractors’ Compliance

WASHINGTON, DC The U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) has released a Town Hall Action Plan based on insights and actionable recommendations derived from meetings hosted by the agency in 2019. Between Feb. 26, 2019 and Oct. 23, 2019, OFCCP hosted seven town hall meetings. These sessions allowed OFCCP to use feedback it received to review its compliance assistance efforts and identify ways to enhance contractors' understanding of their equal employment opportunity obligations.

"Our second Town Hall Action Plan shows our continued commitment to addressing contractor feedback,” said Office of Federal Contract Compliance Programs Director Craig Leen. "With the success of our first Town Hall Action Plan as a guide, we look forward to achieving even greater results as we implement this second action plan.”

The meetings hosted in 2019 helped OFCCP engage specific industries and stakeholder communities to assess their compliance assistance needs, and hear their ideas and the challenges they faced in meeting their equal employment opportunity obligations. The agency also sought input from the tech, financial, legal and educational industries, and targeted outreach to the veteran and Native American communities. It also received input from contractors, consultants, academics, human resource professionals, stakeholders, the legal community and members of the public who attended the sessions.

 In its plan, OFCCP addresses six emerging themes:

  • Update and develop new resources to assist contractors in conducting outreach to diverse talent pools;
  • Provide more compliance assistance and resources for contractors to develop effective affirmative action programs and allow for more dialogue with contractors during compliance evaluations;
  • Enhance avenues  for collaboration between contractors;
  • Enhance resources for protected veterans and their associates, including spouses;
  • Enhance resources to increase the effectiveness of the Indian and Native American Employment Rights Program for Native American workers and job seekers; and
  • Enhance resources for disability inclusion.

OFCCP's goal is to create a noticeable difference in the quality, consistence, availability and efficiency of compliance assistance materials; enhance resources; and increase transparency.

The agency's outreach is underway in cooperation with the department's Office of Compliance Initiatives (OCI), a cross-agency effort that complements the department's enforcement activities by strengthening and innovating compliance assistance outreach to provide employers and workers with access to information about their rights and responsibilities. As part of this, OCI launched Worker.gov and Employer.gov, both of which address a range of employment issues, including federal contractor responsibilities.

OFCCP is a civil rights agency in the U.S. Department of Labor. It enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. Collectively, these laws prohibit federal contractors and subcontractors from discriminating on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. For more information, please call OFCCP's toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

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

Agency
Office of Federal Contract Compliance Programs
Date
March 2, 2020
Release Number
20-233-NAT
Media Contact: Simone Walter
Phone Number
Media Contact: Edwin Nieves
Phone Number
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Two Florida Electrical Contractors Pay $175,413 in Back Wages and Benefits After U.S. Department of Labor Finds Federal Contract Violations

News Release

Two Florida Electrical Contractors Pay $175,413 in Back Wages and Benefits After U.S. Department of Labor Finds Federal Contract Violations

WEST PALM BEACH, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), J & Brothers Electrical Corp. and Southern Integrated Systems LLC – two Florida-based residential and commercial electrical contractors, working on a federally funded project – have paid $175,413 in back wages and fringe benefits to 46 employees for violating the Fair Labor Standards Act (FLSA), the Davis Bacon and Related Acts (DBRA) and the Contract Work Hours and Safety Standards Act (CWHSSA). In addition, WHD debarred Southern Integrated Systems LLC from bidding on federal contracts for three years.

Investigators determined that Southern Integrated Systems LLC failed to pay electricians overtime for hours they worked over 40 in a workweek. The Tampa, Florida, contractor also submitted falsified certified payroll records that failed to report accurately all the hours employees worked on the project. Although the employees worked overtime every workweek, the certified payroll did not reflect those hours.

WHD also determined that J & Brothers Electrical Corp. failed to pay electricians at the required prevailing wage rate based on the duties they performed. In addition, the West Palm Beach, Florida, contractor paid employees at the straight time rates for all the hours they worked, resulting in overtime violations of the CWHSSA and the FLSA when the employees worked more than 40 hours in a workweek.

Investigators also found the weekly payroll records kept by J & Brothers Electrical showed overtime hours paid at time-and-a-half, despite the employer’s admission that they paid their workers at straight-time rates for all the hours that they worked. In addition, while some employees worked on separate, non-federally funded projects, J & Brothers Electrical failed to record hours spent at each worksite, leading to an inability to pay the correct prevailing wage rates accurately to the employees for the hours they worked on federal projects.

All contractors and sub-contractors must ensure they are thoroughly aware of all requirements associated with performing work on federally funded projects,” said Wage and Hour Division District Director Tony Pham, in Miami. “Failing to pay employees the wages they have rightfully earned under federal law shorts the workers and undercuts other employers competing for federal contracts. We encourage all employers to contact us for guidance to avoid violations and ensure workers receive the wages they have earned.”

Southern Integrated Systems LLC subcontracted J & Brothers Electrical Corp. to perform work on the Royal Palm Place Apartments in West Palm Beach, funded through the U.S. Department of Housing and Urban Development. The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers prevailing wage rates and fringe benefits as determined by the U.S. Secretary of Labor and as included in their contracts.

For more information about the FLSADBRA, CWHSSA and other laws enforced by the division, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243) or visit the division’s web site. The division also offers a search tool which allows users to determine if they are 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
March 2, 2020
Release Number
20-249-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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