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

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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 FLSA, DBRA, 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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U.S. Department of Labor Obtains Judgment Requiring Adult Care Provider To Pay $400,000 in Back Wages, Damages and Penalties

News Release

U.S. Department of Labor Obtains Judgment Requiring Adult Care Provider To Pay $400,000 in Back Wages, Damages and Penalties

PITTSBURGH, PA – The U.S. Department of Labor has secured a $400,000 consent judgment for violations of the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA) by Heart II Heart LLC – a company providing adult community residential rehabilitation homes for individuals with disabilities in Pittsburgh, Pennsylvania.

The settlement follows an investigation by the department’s Wage and Hour Division (WHD) that found the employer misclassified all workers performing direct care as independent contractors. As a result, the employer failed to pay overtime to 99 employees when they worked more than 40 hours in a workweek, as required by law. WHD also found that the employer failed to maintain records of the number of hours employees worked. Following that investigation, the department’s Office of the Solicitor filed a lawsuit in U.S. District Court for the Western District of Pennsylvania.

The court’s judgment orders Heart II Heart LLC and its owner, Toni Duncan, to pay $182,624 in back wages, and an equal amount in liquidated damages. WHD also assessed $34,752 in civil money penalties due to the willful nature of the violations. The court had previously granted summary judgment to the Department on several key issues, finding Heart II Heart LLC and Duncan violated the overtime and recordkeeping requirements of the FLSA.

“Employees must be paid all of the wages they are legally due,” said Wage and Hour District Director John DuMont in Pittsburgh, Pennsylvania. “Employers have an obligation to pay employees in compliance with the law.”

“This case demonstrates that we will use all enforcement tools available, including litigation, to ensure employees receive the wages they have earned, and that employers compete on a level playing field.” said Oscar L. Hampton, the Department’s Regional Solicitor in Philadelphia, Pennsylvania.

WHD provides a wide variety of compliance assistance tools to help employers understand their responsibilities and employees understand their rights.

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 2, 2020
Release Number
20-226-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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U.S. Department of Labor Recovers $139,165 in Back Wages For Texas Rio Grande Valley Oil Field Diesel Services Workers

News Release

U.S. Department of Labor Recovers $139,165 in Back Wages For Texas Rio Grande Valley Oil Field Diesel Services Workers

MISSION, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Mobile Diesel Services LLC – based in Mission, Texas – has paid $139,165 to 47 employees to resolve violations of the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer, which provides diesel mechanic service to oil fields in the area, violated FLSA overtime requirements when it paid straight time to hourly employees, rather than overtime, when they worked over 40 hours in a workweek. The law requires employers to pay overtime at time-and-one-half workers’ regular rates of pay for those hours. Mobile Diesel also violated FLSA recordkeeping requirements.

 “Oil field employees work hard for their money and must be paid all the wages they legally earn,” said Wage and Hour Division District Director Nathan Barrow, in McAllen, Texas. “We encourage employers to contact us with any federal labor law questions and to take advantage of all resources the department makes available to them. Violations like those in this case can be avoided, so that workers receive what 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.

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 2, 2020
Release Number
20-331-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Arkansas Boat, ATV, Motorcycle Dealer Pays $26,265 in Back Wages After U.S. Department of Labor Finds Overtime Wage Violations

News Release

Arkansas Boat, ATV, Motorcycle Dealer Pays $26,265 in Back Wages After U.S. Department of Labor Finds Overtime Wage Violations

LITTLE ROCK, AR – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Bradford Marine Inc. – doing business as Bradford Marine & ATV headquartered in Little Rock, Arkansas – has paid $26,265 in back wages to 28 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA). 

The investigation revealed that the marine, power sports and motorcycle dealership with locations in Hot Springs, Little Rock and Springdale, Arkansas; and Texarkana, Texas, violated FLSA overtime requirements when it failed to include monthly commissions paid to employees when calculating their overtime rates. Erroneously excluding these amounts resulted in the employer paying overtime at rates lower than those required by law. An exemption from the overtime requirements that applies to some commissioned employees did not apply in this case as less than half of the workers’ pay came from commissions. The employer also violated the FLSA’s recordkeeping provision.

“Employers must ensure they understand their obligations under the Fair Labor Standards Act,” said Wage and Hour Division District Director Hanz Grünauer, in Little Rock, Arkansas. “Employees must receive all the wages they have legally earned.”

The department updated the rules for how to calculate workers’ regular rate of pay when they work overtime.

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 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 2, 2020
Release Number
20-332-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Conducts Education and Enforcement Campaign To Increase Compliance in Southeast’s Agricultural Industry

News Release

U.S. Department of Labor Conducts Education and Enforcement Campaign To Increase Compliance in Southeast’s Agricultural Industry

ATLANTA, GA – The U.S. Department of Labor’s Wage and Hour Division (WHD) is currently engaged in an education and enforcement initiative to increase compliance with federal labor laws in the Southeast’s agricultural industry, educate stakeholders, employers and employees, and to provide employers with compliance assistance.

Working with stakeholder organizations in Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee, WHD explores a wide variety of methods for raising awareness among industry employers and provides them with information and tools to help them comply with applicable laws. As part of the initiative, WHD representatives have participated in regional educational outreach events hosted by local fruit and vegetable growers’ associations and farm bureaus. In the months ahead, outreach efforts will extend to various commodity groups, trade associations, agricultural extension agents and other governmental agencies to share information on various programs’ requirements.

Compliance assistance and enforcement work hand-in-hand, as the division continues to focus on decreasing violations in the agricultural industry. In calendar year 2019, WHD concluded investigations of more than 300 agricultural employers in its Southeast region, citing violations in 86 percent of those cases. These investigations found more than $1.4 million in back wages owed to more than 2,800 workers, and resulted in the assessment of more than $1.1 million in civil money penalties. WHD is also holding employers accountable by debarring 10 Southeast growers and farm labor contractors from the H-2A temporary labor certification agricultural program. In addition, the department liquidated more than $275,000 in employer surety bonds to secure back wages owed to workers.

“The U.S. Department of Labor is committed to ensuring that agricultural industry employees receive all the wages they have legally earned, that their employers comply with the law, and that the playing field remains level for law-abiding employers,” said Wage and Hour Division Regional Administrator Juan Coria, in Atlanta, Georgia. “Our outreach staff is available throughout the Southeast to provide employers and associations with compliance assistance resources, answer any questions they may have, and help them avoid costly violations. We encourage them to call us for free confidential assistance.”

WHD may suspend, revoke or withhold renewal of farm labor certificates for contractors that have committed multiple violations under the Migrant Seasonal Protection Act (MSPA) or that fail to comply with a final order requiring the payment of a civil money penalty for a violation. Employers are encouraged to review the MSPA ineligible farm labor contractor and H-2A debarment lists prior to contracting for labor.

WHD offers multiple compliance assistance resources to provide employers the tools they need to comply with the law. The division encourages employers to contact them to find out about upcoming compliance assistance events, to request information, or to ask specific questions. All calls are confidential.

For more information about MSPA, H-2A and other laws enforced by the division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://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 2, 2020
Release Number
20-252-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Investigation Finds South Carolina Electrical Contractor Violated Overtime Requirements

News Release

U.S. Department of Labor Investigation Finds South Carolina Electrical Contractor Violated Overtime Requirements

FORT MILL, SC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Simpson Electric Co. – a residential electric company based in Fort Mill, South Carolina – has paid $21,500 in back wages to 116 employees for violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found Simpson Electric Co. failed to include quarterly bonuses it paid to employees when calculating their overtime rates when they worked more than 40 hours in a workweek. Instead, the employer based overtime only on employees’ base hourly pay. This exclusion resulted in the employer paying overtime at rates lower than those the law requires.

“Employers must have a clear understanding of which kinds of perks they need to include, and which they can exclude when calculating overtime,” said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. “Other employers should use the results of this investigation as an opportunity to review their own pay practices to make sure they are in compliance. We encourage them 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 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
February 25, 2020
Release Number
20-53-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 Charleston Holiday Inn Paying $58,233 in Back Wages and Damages for Overtime Violations

News Release

U.S. Department of Labor Investigation Results in Charleston Holiday Inn Paying $58,233 in Back Wages and Damages for Overtime Violations

CHARLESTON, SC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Tara of Charleston LLC – a Charleston, South Carolina-area company operating a Holiday Inn – has paid $58,233 in back wages and liquidated damages to 55 employees for violating overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD found that Tara of Charleston LLC paid the employees it hired through a Charleston staffing agency straight time for all the hours that they worked, resulting in violations when the employer failed to pay the workers overtime when they worked more than 40 hours in a workweek. Tara of Charleston LLC also failed to include certain bonuses employees earned in the calculation when they determined workers’ overtime rates. This exclusion resulted in employees being paid overtime rates lower than legally required. The employer also failed to pay employees for time they spent in short rest breaks, which is required by law, and failed to pay the correct overtime rate to tipped employees. WHD also cited recordkeeping violations for the employer’s failure to record workers’ short rest breaks as work time.

“This investigation serves as a reminder to other hotel employers to pay careful attention to Fair Labor Standards Act requirements concerning tips, breaks and overtime,” said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. “The U.S. Department of Labor makes many resources available to employers and employees to make them aware of rights and responsibilities. We encourage hotel employers and employees to contact us directly if they have questions about how employees must be paid.”

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
February 25, 2020
Release Number
20-22-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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