U.S. Department of Labor Finds Georgia Contractor Violated Federal Wage Laws During Hurricane Florence Recovery Efforts in North Carolina

News Release

U.S. Department of Labor Finds Georgia Contractor Violated Federal Wage Laws During Hurricane Florence Recovery Efforts in North Carolina

RALEIGH, NC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), an Athens, Georgia-based disaster relief company will pay $184,838 in wages to 18 employees after an investigation found the company violated federal wage and overtime laws while under contract to provide recovery services in several North Carolina locations in the aftermath of Hurricane Florence.

WHD investigators determined MLU Services Inc. violated the Fair Labor Standards Act (FLSA) when it paid some overtime-eligible employees flat salaries without regard to the number of hours that they worked. This practice violated FLSA overtime requirements when those employees worked more than 40 hours in a workweek but were not paid overtime.

WHD also found MLU Services paid quality control inspectors at rates below those required by the McNamara-O’Hara Service Contract Act (SCA) when they performed work on the employer’s contract with the Federal Emergency Management Administration. MLU Services paid the inspectors rates applicable to data entry personnel – rates lower than those required for the work they performed. The employer also failed to pay these employees fringe benefits required under the SCA.

“Employers must meet their obligation to pay their employees the wages they have legally earned,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “Contractors and subcontractors awarded federal contracts must understand that incorrectly classifying employees can lead to costly violations. The U.S. Department of Labor offers employers a wide variety of tools to help them understand their responsibilities.”

The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor’s collective bargaining agreement.

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, SCA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/agencies/whd.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the 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 6, 2020
Release Number
19-2157-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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Seattle Security Company Pays Employees $124,000 in Back Wages, Damages After U.S. Department of Labor Finds Overtime Violations

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Seattle Security Company Pays Employees $124,000 in Back Wages, Damages After U.S. Department of Labor Finds Overtime Violations

SEATTLE, WA – A California-based security services provider has paid $124,029 in back wages and damages to 30 workers formerly employed as security guards at Amazon’s Seattle Spheres geodesic dome facilities, after a U.S. Department of Labor’s Wage and Hour Division (WHD) investigation found the employer violated requirements of the Fair Labor Standards Act (FLSA).

 WHD investigators found Security Industry Specialists Inc. failed to pay security guards overtime when they worked more than 40 hours in a workweek. Instead, the employer paid these workers as salaried workers, regardless of the number of hours they worked. Working through meal breaks, working Saturdays and working before and after their scheduled shifts resulted in these employees working more than 40 hours each week. The employer also failed to record the total number of hours employees actually worked, violating FLSA recordkeeping requirements.

 “Employers are required to pay their employees the wages they have legally earned for all the hours that they work,” said Wage and Hour Division District Director Thomas Silva in Seattle, Washington. “Paying an employee a salary does not necessarily mean they are exempt from or not entitled to overtime. The U.S. Department of Labor is committed to educating employers, to improving compliance with federal wage laws to ensure workers receive the wages they have earned, and, that employers compete on a level playing field.”

 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.

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 2, 2020
Release Number
19-2232-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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South Carolina Poultry Catching Company Pays $96,782 to Employees After U.S. Department of Labor Uncovers Overtime Violations

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South Carolina Poultry Catching Company Pays $96,782 to Employees After U.S. Department of Labor Uncovers Overtime Violations

MANNING, SC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Quintanilla Poultry LLC – a poultry catching company based in Manning, South Carolina – has paid $96,782 in back wages to 55 employees for overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined Quintanilla Poultry LLC paid its chicken catchers a piece rate, based on the number of loads of chickens each crew caught, without regard to the number of hours that they worked. By doing so, the employer failed to pay overtime when these employees worked over 40 hours in a workweek. Similar overtime violations resulted when Quintanilla Poultry paid some crew leaders a combination of fixed salaries each workweek without regard to the number of hours that they worked for supervisor duties performed and piece rates for catching and loading of chickens. The employer failed to pay overtime to crew leaders when they exceeded 40 hours in a workweek. The employer also failed to maintain accurate records of the number of hours each employee worked.

“Some employers mistakenly believe that paying employees by piece rate or on a salary automatically means that they do not have to pay them overtime,” said Wage and Hour District Director Jamie Benefiel, in Columbia, South Carolina. “We encourage employers to use the many tools we offer to learn about their responsibilities under the law, and to understand the requirements for employees paid in different manners. We also encourage employers to contact us directly with questions.”

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 2, 2020
Release Number
19-1659-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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Judge Orders Michigan Landscaping Company to Pay Misclassified Employees $118,426 in Back Wages and Damages

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Judge Orders Michigan Landscaping Company to Pay Misclassified Employees $118,426 in Back Wages and Damages

JENISON, MI – The U.S. District Court for the Western District of Michigan has ordered New Image Landscaping LLC and owner Jeremy Cizauskas to pay 32 former employees a total of $118,425 in back wages and damages, after a U.S. Department of Labor Wage and Hour Division (WHD) investigation. The court affirmed WHD’s findings that the Jenison, Michigan employer violated the Fair Labor Standards Act (FLSA) by denying landscape employees overtime after misclassifying them as independent contractors. 

WHD investigators determined the employees did not meet the criteria for classification as independent contractors because Cizauskas exercised control over the work they accomplished, including scheduling and providing equipment, training, and uniforms. The employer controlled pay rates and the hiring of employees working in his landscaping, lawn mowing, and snow removal business.

The court agreed the workers were not independent contractors, but rather employees, and were therefore entitled to overtime and ordered the employer to pay $59,212 in overtime back wages and an additional, equal amount in liquidated damages. WHD investigators found many of Cizauskas’ employees routinely worked in excess of 50 hours per week at a set hourly rate, and that the employer often failed to pay them for time that they worked when they missed their meal breaks.

“Employers must ensure that employees receive all the wages they have legally earned,” said Wage and Hour District Director Mary O’Rourke in Grand Rapids, Michigan. “Simply because a pay practice appears to be common in an industry does not necessarily mean that it complies with the law. Employers have a responsibility to understand federal wage laws that are applicable to their business. The Wage and Hour Division offers multiple compliance assistance tools to help employers understand their responsibilities and legal obligations to their employees.”

The court also issued an injunction requiring both New Image Landscaping and Cizauskas to comply with all provisions of the FLSA in the future.

WHD’s Grand Rapids, Michigan office investigated the case and the Department’s Office of the Solicitor in Chicago litigated the 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.

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.

Secretary of Labor v. Image Landscaping LLC, et.al,
Civil Action No. 1:18-cv-00429-SJB

Agency
Wage and Hour Division
Date
December 31, 2019
Release Number
19-2148-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Investigation Uncovers Minimum Wage, Overtime, Child Labor Violations at West Texas Restaurant

News Release

U.S. Department of Labor Investigation Uncovers Minimum Wage, Overtime, Child Labor Violations at West Texas Restaurant

AMARILLO, TX – After investigations by the U.S. Department of Labor’s Wage and Hour Division (WHD), The Plaza Restaurant – a restaurant chain in Texas – has paid $44,621 in back wages to 570 employees for violating the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements. Additionally, WHD assessed the employer $13,420 in civil money penalties for child labor violations of the FLSA.

WHD investigations at The Plaza Restaurant locations in Lubbock, Amarillo, Borger, Dumas, and Pampa, Texas, found the employer deducted from employees’ wages or accepted cash payments to pay for required uniforms. This practice resulted in violations when those deductions or payments reduced employees’ wages below the federal minimum wage of $7.25 per hour. The employer also systemically violated FLSA overtime provisions when it failed to pay salaried cooks overtime when they worked more than 40 hours in a workweek. The restaurant violated FLSA child labor provisions by permitting 14- and 15-year-old employees to work more than 8 hours on a non-school day, more than 3 hours on a day when school was in session, and later than the permitted evening hours. Additionally, the employer failed to keep records of the number of hours employees worked, as the FLSA requires. The Division also found that the employer failed to provide the general notice required by the Family and Medical Leave Act.

“Employers need to be very familiar with the Fair Labor Standards Act’s child labor requirements when hiring minors,” said Wage and Hour Division District Director Evelyn Sanchez in Albuquerque, New Mexico. “Those laws are in place to ensure that when children work, they are safe and the work does not jeopardize their health, well-being, or educational opportunities. Other employers should use this investigation as an opportunity to review their own pay practices to make sure they are in compliance. 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, electronic toolkits, 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, child labor, 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. Employers can find additional compliance assistance information on the Wage and Hour Division website.

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
December 31, 2019
Release Number
19-1305-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Investigation Recovers $541,597 in Wages for Workers with Disabilities at Alabama Facilities

News Release

U.S. Department of Labor Investigation Recovers $541,597 in Wages for Workers with Disabilities at Alabama Facilities

MONTGOMERY, AL After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the Montgomery Arc and two of its subsidiaries – Hanan Center and McInnis Recycling Center – will pay $541,597 in back wages to 80 employees for failing to meet the requirements of Section 14(c) of the Fair Labor Standards Act (FLSA). WHD also found that Hanan Center and McInnis Recycling Center violated requirements of Section 511 of the Rehabilitation Act.

Section 511 requires that individuals with disabilities receive career counseling, information and referral services from the state vocational rehabilitation agency and information about local opportunities for self-advocacy, self-determination and peer-mentoring training from the employer each year while working at subminimum wages under the FLSA’s Section 14(c). WHD found Hanan Center and McInnis Recycling Center failed to ensure workers were provided these services during subminimum wage employment. Investigators also determined the employers failed to conduct a prevailing wage survey and to adjust wage rates annually, as required. Failure to provide workers with disabilities the proper services each year negated the employers’ ability to pay subminimum wages that would otherwise have been allowed, resulting in WHD finding affected workers due the full federal minimum wage of $7.25 per hour.

WHD also found the Montgomery, Alabama-based Montgomery Arc automatically deducted 30 minutes per day from employees’ work time for meal breaks, regardless of whether employees actually took those breaks. This practice resulted in violations when employees worked through their breaks but were not paid for that time. The employer also failed to maintain records of daily and weekly hours staff worked, as well as the number of hours worked by workers with disabilities, a FLSA recordkeeping violation.

“The U.S. Department of Labor is committed to ensuring that all workers receive the wages legally due to them and to protecting workers with disabilities from exploitation in the workplace,” said Wage and Hour District Director Kenneth Stripling in Birmingham, Alabama. “We will continue to provide education and tools to employers to help them understand their responsibilities and how to comply with the law. Both Section 511 of the Rehabilitation Act and FLSA Section 14(c) require some very specific actions by employers. We encourage them to reach out to their local Wage and Hour Division office to speak with a trained professional about any questions they may have, and to avoid violations.”

Section 14(c) of the FLSA is designed to offer more job opportunities for workers with disabilities when their disability affects their productive capacity for the work being performed. After applying for and receiving a certificate from WHD, the employer may determine their employees’ productivity and calculate the appropriate commensurate wage as a percentage of the rate for experienced employees performing similar jobs in the area.

For more information about the FLSA, Section 14(c) 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.

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
December 31, 2019
Release Number
19-2136-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 Las Vegas Restaurant Paying $212,861 to 71 Employees for Overtime Violations

News Release

U.S. Department of Labor Investigation Results in Las Vegas Restaurant Paying $212,861 to 71 Employees for Overtime Violations

LAS VEGAS, NV – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Bonito Michoacan Inc. – a restaurant in Las Vegas, Nevada – will pay $212,861 in back wages and liquidated damages to 71 employees after the U.S. Department of Labor’s Wage and Hour Division (WHD) found the employer violated the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found Bonito Michoacan Inc. failed to pay employees overtime when they worked more than 40 hours per week. Instead, the employer paid restaurant employees at their straight time rates, in cash, for overtime hours, and recorded some of those payments as a “bonus” in the payroll records. The employer’s failure to record and count mandatory staff meetings as work time led the employer to fail to pay employees for some of the hours that they worked, further contributing to the overtime violations. Bonito Michoacan also violated FLSA recordkeeping requirements by failing to maintain accurate time and payroll records.

“Employers are responsible for ensuring that they pay employees all the wages they have legally earned, including overtime, and for keeping accurate payroll records,” said Wage and Hour Division Assistant District Director Higinio Ramos, in Las Vegas, Nevada. “The U.S. Department of Labor is eager to assist employers to comply with the law and avoid violations such as 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. In addition, WHD provides employers with compliance assistance resources related to overtime to help them comply with the FLSA.

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

Agency
Wage and Hour Division
Date
December 30, 2019
Release Number
19-1662-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Investigation Results in San Francisco Auto Insurer Paying $110,730 to 13 Employees for Overtime Violations

News Release

U.S. Department of Labor Investigation Results in San Francisco Auto Insurer Paying $110,730 to 13 Employees for Overtime Violations

SAN FRANCISCO, CA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Go Maps Inc. – an Internet-based car insurance company headquartered in San Francisco, California–has paid $110,730 in back wages and liquidated damages to 13 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found Go Maps Inc. - which does business as Go - paid sales agents a fixed salary for the hours that they worked, without regard to whether they exceeded 40 in a workweek, resulting in overtime violations. Some employees worked 60 hours per week on average, and as many as 70 hours during some periods. The employer also violated FLSA recordkeeping requirements by failing to maintain payroll and daily time records for employees throughout the investigative period.

“The Wage and Hour Division is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked – including legally required overtime,” said District Director Susana Blanco, in San Jose, California. “Investigations like this ensure that employees get paid and that employers compete on a level playing field.”

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. In addition, WHD provides employers with compliance assistance resources related to overtime to help them comply with the FLSA.

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

Agency
Wage and Hour Division
Date
December 30, 2019
Release Number
19-1663-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Investigation Results in South Carolina Retailer Paying $66,410 in Back Wages and Damages for Wage Violations

News Release

U.S. Department of Labor Investigation Results in South Carolina Retailer Paying $66,410 in Back Wages and Damages for Wage Violations

COLUMBIA, SC After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Planet Vapor Inc. – an enterprise with five retail stores and a combined laboratory warehouse operating in Columbia, Lexington, West Columbia, and Irmo, South Carolina – has paid $66,410 in back wages and liquidated damages to 20 employees for violating the minimum wage, overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigated Planet Vapor Inc. – operating as Planet Vapor – and found the employer paid some store managers a flat weekly salary that, when divided by the number of hours they worked, failed to cover those hours at the federal minimum wage of $7.25 per hour. The retailer also inaccurately classified managers and lab employees as exempt from the overtime requirements of the FLSA when none met the requirements for exemption and paid them straight-time for all the hours that they worked. This practice resulted in overtime violations when employees worked more than 40 hours per week without overtime payment. Investigators also determined the employer failed to include commissions and bonuses in some employees’ regular rates of pay when calculating their overtime rates. This exclusion resulted in the employer paying overtime rates lower than those required by law. The employer also violated the recordkeeping requirements of the FLSA when it failed to maintain accurate time and payroll records.

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. “Employers must be aware of their responsibilities under the law, make sure to calculate their employees’ pay correctly and apply any overtime exemptions accurately. We encourage employers to call us any time to speak directly with one of our trained professionals if they have questions, or to use the many tools we offer online to help them comply with the law, pay workers legally and avoid 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 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/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
December 31, 2019
Release Number
19-2096-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 Pennsylvania Landscaping Company Paying $74,290 in Back Wages and Penalties For H-2B Visa Program Violations

News Release

U.S. Department of Labor Investigation Results in Pennsylvania Landscaping Company Paying $74,290 in Back Wages and Penalties For H-2B Visa Program Violations

MOUNT PLEASANT, PA – Silvis Group Inc. – a Mount Pleasant, Pennsylvania, landscaping company – has entered consent findings with the U.S. Department of Labor requiring payment of $74,290 in back wages and penalties for violating the labor provisions of the H-2B temporary visa program.

An investigation by the Department's Wage and Hour Division (WHD) determined - that from January 17, 2015, to January 7, 2017 - Silvis Group Inc. violated requirements of the H-2B visa program by:

  • Denying employment for landscaping and grounds keeping positions to two qualified U.S. applicants, resulting in $8,414 in back wages for the U.S. applicants;
  • Failing in some weeks to pay overtime at the correct rate, after illegally excluding bonus payments from the calculation, resulting in $4,457 in back wages for 30 H-2B employees from Mexico;
  • Taking impermissible deductions for uniforms and housing in poor condition, resulting in $16,350 in back wages for 30 H-2B employees from Mexico;
  • Failing to cooperate with and actively working to hinder the WHD investigation;
  • Misrepresenting dates of temporary need and the number of employees needed on its Petition for a Nonimmigrant Worker and Foreign Labor Certification forms; and
  • Failing to meet the requirement to contractually forbid third parties from seeking payment from employees.

Silvis Group Inc. has paid a civil money penalty of $45,068 for substantial and willful failure to comply with H-2B provisions.

"The H-2B visa program includes specific requirements employers must follow to participate. When employers fail to comply with these requirements, we will hold them accountable," said Wage and Hour District Director John DuMont, in Pittsburgh, Pennsylvania.

"This case highlights the U.S. Department of Labor's efforts to ensure that employers understand and abide by the provisions of the program to safeguard American employees against displacement while protecting foreign workers from being paid less than the wage they were promised," said Regional Philadelphia Solicitor Oscar L. Hampton III.

In addition to paying the back wages and penalty, Silvis Group Inc. agrees to future compliance with the H-2B provisions, and three years of monitoring with an independent third party auditor.

Before the U.S. Citizenship and Immigration Services can approve an employer's petition for H-2B visa workers, an employer must file an application with the Department stating that there are not sufficient U.S. employees who are able, willing, qualified, and available. The application must also affirm that the employment of non-immigrant, temporary workers will not adversely affect the wages and working conditions of similarly employed persons in the U.S.

For more information about the H-2B temporary visa program, FLSA, and other laws enforced by the WHD, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/agencies/whd.

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

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

Agency
Wage and Hour Division
Date
December 31, 2019
Release Number
19-1194-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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