Texas-Based Contractor Pays $153,755 in Back Wages To Delivery Drivers after U.S. Department of Labor Investigation

News Release

Texas-Based Contractor Pays $153,755 in Back Wages To Delivery Drivers after U.S. Department of Labor Investigation

RICHARDSON, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Accelore Group LLC – doing business as Accelore Solutions in Richardson, Texas – has paid $153,755 in back wages to 289 employees to resolve violations of the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer, which contracts with Amazon to provide package delivery, failed to pay drivers overtime when they worked more than 40 hours per workweek. Investigators found the employer paid some employees flat rates per day, or for a fixed number of hours per day, without regard to the number of hours that they actually worked. By doing so, the employer violated FLSA overtime provisions by failing to pay time-and-one-half when employees worked more than 40 hours in a workweek. When the employer did pay overtime to hourly employees, the employer failed to include incentive pay when determining their overtime rates. This exclusion led to overtime being paid at rates lower than those required by law.

“Employers have a responsibility to understand the law and to pay their workers required overtime when they work more than 40 hours in a workweek,” said Wage and Hour Division District Director Jesus A. Valdez, in Dallas, Texas. “The U.S. Department of Labor is committed to enforcing the law so that employees are paid the wages they have legally earned, and so that employers compete on a level playing field. We encourage all employers to contact our office to learn more about federal wage laws.”   

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.

Agency
Wage and Hour Division
Date
February 3, 2020
Release Number
20-37-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Local Government in Michigan Pays $54,945 in Back Wages to 48 Police and Firefighters after U.S. Department of Labor Investigation

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Local Government in Michigan Pays $54,945 in Back Wages to 48 Police and Firefighters after U.S. Department of Labor Investigation

BELLEVILLE, MI After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Charter Township of Van Buren has paid $54,945 in back wages to 48 current and former employees for violations of the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined the Wayne County government entity – based in Belleville, Michigan – violated overtime provisions of the FLSA by failing to pay employees the required overtime specifically for time they spent working before their shifts officially began.  In addition, the employer paid some firefighters at straight-time rates for overtime hours worked and paid some police officers straight time for hours they spent in training, even when employees worked those hours in overtime workweeks.  

“Employers must pay their employees all the wages they have legally earned, and must understand the laws that apply to specific employment situations, such as, in this case, those that govern pay for public safety employees,” said Wage and Hour Division District Director Timolin Mitchell, in Detroit, Michigan. “The outcome of this investigation should remind other employers to review their pay practices to ensure they comply with the law. Employers are encouraged to contact the Wage and Hour Division to better understand their responsibilities so that they can avoid violations.”

The FLSA provides that fire protection or law enforcement employees may be paid overtime on a “work period” basis, with a work period ranging from seven to 28 consecutive days. WHD’s Fact Sheet about law enforcement and fire protection employees provides more information.

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
January 28, 2020
Release Number
20-43-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Investigation Results in Michigan Towing Company Paying $58,551 in Overtime Back Wages to 66 Employees

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U.S. Department of Labor Investigation Results in Michigan Towing Company Paying $58,551 in Overtime Back Wages to 66 Employees

CLINTON TOWNSHIP, MI After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Elite Road Service LLC – based in Clinton Township, Michigan – has paid $58,551 in back wages to 66 current and former employees to resolve violations of the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined the towing company paid tow truck drivers on a commission basis, without regard to the number of hours that they worked. The employer violated FLSA overtime provisions by failing to pay overtime when drivers worked more than 40 hours in a workweek. Investigators also found that the employer paid dispatchers flat weekly salaries, regardless of the number of hours that they worked, which led to additional violations when the employer failed to pay overtime when those employees worked more than 40 hours in a workweek. Failing to keep accurate records of the number of hours employees worked also violated the recordkeeping requirements of the FLSA.

“Simply paying employees a salary, or on a commission basis, does not mean that they are not entitled to overtime when they work more than 40 hours in a workweek,” said Wage and Hour Division District Director Timolin Mitchell, in Detroit, Michigan. “Employers should routinely review their pay practices to ensure they comply with the law. We encourage them to contact the Wage and Hour Division to understand their responsibilities better so that they can avoid similar violations. Wage and Hour professionals are available to answer questions and provide compliance 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 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
January 28, 2020
Release Number
20-84-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Iowa Construction Company Pays $126,420 in Overtime Back Wages After U.S. Department of Labor Investigation Finds Violations

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Iowa Construction Company Pays $126,420 in Overtime Back Wages After U.S. Department of Labor Investigation Finds Violations

SOLON, IA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), E & J Electric Inc. – based in Solon, Iowa, and operates as both E & J Electric Inc. & E & J Geothermal Inc. – has paid $126,420 in back wages to 25 current and former employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined the construction company violated overtime provisions when it failed to pay employees for time spent in required travel returning to the employer’s shop at the end of the workday. Instead, the employer stopped paying for workers’ time when they left the outlying job sites. Additional violations occurred when the employer offered employees compensatory time off in lieu of overtime pay when they worked more than 40 hours in a workweek. Private employers cannot offer “comp time” instead of paying overtime. WHD investigators also determined the company’s destruction of paper records – along with the unintentional deletion of computer records – resulted in FLSA recordkeeping violations.

“Federal law prohibits private companies from offering comp time off in lieu of wages earned, and requires companies to pay employees for time they spend traveling on behalf of the company during work hours,” said Wage and Hour District Director Marcy Boldman, in Des Moines, Iowa. “The Wage and Hour Division encourages employers to use the wide variety of compliance tools we offer to understand these pay requirements, and to contact us for guidance. Employers may call us and speak with a trained Wage and Hour professional about any questions they have.”

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
January 27, 2020
Release Number
20-85-KAN
Media Contact: Scott Allen
Phone Number
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South Carolina Tobacco, Vape Retailer to Pay $46,748 in Back Wages, Damages after U.S. Department of Labor Uncovers Overtime Violations

News Release

South Carolina Tobacco, Vape Retailer to Pay $46,748 in Back Wages, Damages after U.S. Department of Labor Uncovers Overtime Violations

COLUMBIA, SC After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Dab City Tobacco and Vape LLC, headquartered in Columbia, South Carolina, will pay $46,748 in back wages and liquidated damages to 31 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA). The department also assessed the employer a $21,235 civil money penalty for the willful nature of the violations.

WHD determined Dab City Tobacco and Vape failed to pay overtime to employees when they worked more than 40 hours in a workweek. Instead, the employer paid for overtime hours in cash, off the books, at straight-time rates. The employer also violated FLSA recordkeeping requirements when it failed to maintain accurate personnel and time records, and failed to display required FLSA posters in their establishments to inform workers of their rights. Dab City Tobacco and Vape operates six retail locations in in Columbia, West Columbia, Camden, and Leesville, South Carolina.

“The U.S. Department of Labor remains committed to ensuring employees receive all the wages they have rightfully earned,” said Wage and Hour District Director Jamie Benefiel, in Columbia, South Carolina. “When an employer willfully uses deceptive practices that prevent employees from collecting wages owed under the FLSA, we must respond. We encourage employers to call us any time or to use the many tools we offer to help them comply with the law, pay workers legally and avoid costly violations.” 

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
January 21, 2020
Release Number
19-2246-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Investigation and Litigation Results in Consent Judgment Requiring New York Restaurants to Pay Back Wages and Liquidated Damages to 79 Current and Former Employees

News Release

U.S. Department of Labor Investigation and Litigation Results in Consent Judgment Requiring New York Restaurants to Pay Back Wages and Liquidated Damages to 79 Current and Former Employees

WESTBURY, NY – The U.S. District Court for the Eastern District of New York has entered a consent judgment requiring three Long Island, New York-area restaurants and their owners to pay a total of $365,000 in back wages and liquidated damages to 79 current and former employees. The court action follows 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 defendants must also pay $15,000 in penalties.

 WHD found that Williston Town House in Williston Park, Old Westbury Diner in Old Westbury, Towers on the Green in Floral Park and owners Spiros Dimas and Baftije Dimas violated the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA). Investigators found that cooks, bussers and dishwashers typically worked 60 hours a week or more but that the defendants paid those employees flat weekly salaries regardless of the number of hours that they worked. The defendants thus violated federal law by failing to pay overtime premiums for hours worked over 40 in a workweek. WHD also found that the defendants failed to maintain accurate time and pay records, at times failing to keep any time and pay records.

“Employers have a responsibility to understand federal wage laws that apply to their businesses, to pay employees properly and to record their employees’ work hours and pay rates accurately,” said Wage and Hour District Director David An in Westbury, New York. “The Wage and Hour Division offers multiple compliance assistance tools to help employers understand their responsibilities and legal obligations to their employees.”

“The U.S. Department of Labor will take appropriate and effective legal actions to ensure that employees receive the wages they have earned for their work,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York City. “Our work continues to level the playing field for employers.”

In addition to requiring the defendants to pay back wages, liquidated damages and penalties, the consent judgment prohibits them from violating the FLSA in the future. It also prohibits them from retaliating against or directly or indirectly soliciting or accepting any of the back wages or liquidated damages paid to employees. In addition, the judgment orders the defendants to, among other things, post notices for a period of two years in English, Spanish and Greek, informing employees of the settlement and their FLSA rights; distribute copies of WHD flyers and fact sheets detailing employees’ FLSA rights and overtime pay requirements to all current employees and new employees hired within one year. They must also use automated or otherwise FLSA-compliant timekeeping systems for all employees to reflect employees’ work hours accurately, including those of employees who work at multiple locations.

WHD’s Long Island District Office conducted the investigations. Trial attorneys Rosemary Almonte, Frances Y. Ma and Hollis V. Pfitsch litigated the case for the department’s Regional Office of the Solicitor in New York. View the complaint and consent judgment.

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 WHD, contact its 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 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.

Agency
Wage and Hour Division
Date
January 21, 2020
Release Number
20-3-NEW
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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U.S. Department of Labor Investigation Results in Mississippi Wine And Liquor Store Paying $22,782 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in Mississippi Wine And Liquor Store Paying $22,782 in Back Wages and Damages

JACKSON, MS – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Warehouse Liquors & Wines Inc. – operating as Wines & Spirits in the Quarter in Jackson, Mississippi – has paid $22,782 in back wages and liquidated damages to six employees for violating the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer failed to pay employees overtime when employees worked more than 40 hours in a workweek. Instead, the employer paid workers their straight-time rates, in cash, for their overtime hours. The employer paid some workers flat salaries, without regard to the number of hours they worked. This pay practice also violated FLSA overtime requirements when those employees worked more than 40 hours in a workweek and the employer did not pay overtime. Wines & Spirits also failed to keep records of the number of hours employees worked, a violation of FLSA recordkeeping requirements.

“Employers must pay their employees the wages they have legally earned for all the hours they work,” said Wage and Hour Division District Director Audrey Hall in Jackson, Mississippi. “Intentionally paying straight-time rates instead of required overtime is not only an unlawful pay practice, but it gives the employer an unfair advantage over law-abiding employers. The Wage and Hour Division is available to assist any employers in understanding their obligations. Violations like those found 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
January 17, 2020
Release Number
19-2256-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Investigation Results in Detroit Area Car Wash Operator Paying $83,741 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in Detroit Area Car Wash Operator Paying $83,741 in Back Wages and Damages

DETROIT, MI – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Super Car Wash Systems & Holdings LLC – based in Royal Oak, Michigan – has paid $83,741 in back wages and damages to 60 current and former employees at nine Detroit metro-area car wash locations. WHD investigators found the employer violated overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

Investigators determined that Super Car Wash Systems & Holdings LLC failed to pay overtime at time-and-one-half employees’ regular rates of pay when they worked more than 40 hours in a workweek. Instead, the employer paid for overtime hours at workers’ straight-time rates, in cash. The employer also failed to maintain accurate records of overtime payments made and failed to display required postings, violating FLSA recordkeeping requirements.  

“Employers must pay their employees all the wages they have legally earned, and are required to maintain records of payments made to them – including those made in cash,” said Wage and Hour Division District Director Timolin Mitchell, in Detroit, Michigan. “Employers are encouraged to contact us to better understand their responsibilities so that they can avoid violations like those found in this case.”

Investigators found violations at the company’s Michigan locations in Eastpointe, Farmington, Royal Oak, Southfield, Walled Lake and Warren.

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
January 16, 2020
Release Number
19-2239-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Investigation Results in Texas Trucking Company Paying $173,426 in Back Wages

News Release

U.S. Department of Labor Investigation Results in Texas Trucking Company Paying $173,426 in Back Wages

AUSTIN, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Rami Transportation Inc. – based in San Marcos, Texas – has paid $173,426 in back wages to 66 employees to resolve overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that the general freight trucking company incorrectly classified some of its drivers as independent contractors and paid them based on a percentage of their weekly hauling revenue regardless of the number of hours they worked. The company violated federal law when it failed to pay overtime when employees worked more than 40 hours in a workweek. WHD also cited the employer for recordkeeping violations.

“Truck drivers must be paid every dollar they earn,” said Wage and Hour Division District Director Nicole Sellers in Austin, Texas. “Other employers should use the resolution of this case as an opportunity to review their own pay practices to ensure they comply with the law. We encourage them to contact us for assistance in understanding their responsibilities so that they can 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, 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.

Agency
Wage and Hour Division
Date
January 15, 2020
Release Number
19-2137-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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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) and the Family and Medical Leave Act (FMLA). 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:

  • FLSA2020-1: Addressing calculating overtime pay for a non-discretionary lump sum bonus paid at the end of a multi-week training period.
  • FMLA2020-1-A: Addressing whether a combined general health district must count the employees of the county in which the health district is located for the purpose of determining FMLA eligibility for its employees.
  • FLSA2020-2: Addressing whether per-project payments satisfy the salary basis test for exemption.

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 51st, 52nd and 53rd opinion letters issued by WHD since January 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
January 7, 2020
Release Number
20-0005-NAT
Media Contact: Emily Weeks
Phone Number
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