U.S. Department of Labor Finds Mississippi-based Agricultural Employer Violated Guest Worker Visa Program Requirements in Florida

News Release

U.S. Department of Labor Finds Mississippi-based Agricultural Employer Violated Guest Worker Visa Program Requirements in Florida

MIAMI, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), H-2A Complete II Inc. – an H-2A staffing company providing workers in the Indian River and Highlands County areas of Florida and operating as H-2A Complete – has paid $47,154 in wages to 66 employees for violating requirements of the H-2A visa program.

WHD investigators determined the Southaven, Mississippi-based employer provided only dinner to workers, forcing them to buy their own breakfast and lunch, which caused their out-of-pocket expenses to exceed the amount stated on the job order that the staffing company used to secure the workers. The H-2A program requires employers to provide at least three meals per day at no more than the Department’s specified cost to employees.

“Agricultural employers that bring in temporary guest workers on H-2A visas must comply with all the provisions of the program, including all transportation, wage and housing requirements,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “When employers fail to obey the law, like they did in this case, their violations affect the welfare of their employees and create an unfair advantage over their competitors. We offer a wealth of compliance information readily available to help employers and farm labor contractors understand their obligations under the law.”

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

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

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

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

Agency
Wage and Hour Division
Date
December 13, 2019
Release Number
19-2117-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Investigation Finds Guam Bakeries Violated Federal Overtime Law

News Release

U.S. Department of Labor Investigation Finds Guam Bakeries Violated Federal Overtime Law

DEDEDO, GU – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), two Guam bakeries – New Fresh Bread Bakeshop in Dededo and Café Panadero in Yigo – will pay $108,929 in back wages and liquidated damages to 20 employees for violations of the Fair Labor Standards Act's (FLSA) overtime requirements. WHD has also assessed $7,535 in civil penalties against the employer.

WHD investigators found the bakeries and their owner, Zenaida Milano, failed to pay employees overtime at time-and-one-half their regular rates of pay when they worked beyond 40 hours in a workweek, as the law requires. Instead, Milano continued to pay employees their straight time rates for the overtime hours. The employer acknowledged not paying overtime, and told investigators that employees agreed with the arrangement in order to secure more hours of work. 

"Federal law prohibits an employer from entering into any agreement with employees to waive their right to overtime pay," said Wage and Hour District Director Terence Trotter in Honolulu, Hawaii. "Simply because an employee may agree to a particular arrangement does not make it legal. Our work to enforce these requirements ensures workers receive all the wages they have legally earned, and levels the playing field for employers."

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/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 10, 2019
Release Number
19-2048-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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CORRECTED: U.S. Department of Labor Final Rule Makes It Easier to Offer Perks to Workers

News Release

CORRECTED: U.S. Department of Labor Final Rule Makes It Easier to Offer Perks to Workers

WASHINGTON, DC – The U.S. Department of Labor today announced a final rule that will allow employers to more easily offer perks and benefits to their employees.

The rule released today marks the first significant update to the regulations governing regular rate requirements under the Fair Labor Standards Act (FLSA) in over 50 years. Those requirements define what forms of payment employers include and exclude in the FLSA's "time and one-half" calculation when determining overtime rates.

The previous regulatory landscape left employers uncertain about the role that perks and benefits play when calculating the regular rate of pay. The new rule clarifies which perks and benefits must be included in the regular rate of pay, as well as which perks and benefits an employer may provide without including them in the regular rate of pay.

"This final rule encourages employers to invest in the American workforce, to the benefit of their employees," U.S. Labor Secretary Eugene Scalia said. "In a robust economy with a million more open jobs than job seekers, we must allow employers to offer perks and benefits that will attract talent for open jobs and compensate employees for their hard work. This rule is an important step in that direction."

"The regular rate final rule provides clarity that allows employers to provide more benefits to their employees without unknown overtime consequences or litigation," said Cheryl M. Stanton, Administrator for the Department's Wage and Hour Division. "Allowing employers to offer more perks at work provides a positive path forward for employers and employees alike."

Specifically, the final rule clarifies that employers may offer the following perks and benefits to employees without risk of additional overtime liability:

  • the cost of providing certain parking benefits, wellness programs, onsite specialist treatment, gym access and fitness classes, employee discounts on retail goods and services, certain tuition benefits (whether paid to an employee, an education provider, or a student-loan program), and adoption assistance;
  • payments for unused paid leave, including paid sick leave or paid time off;
  • payments of certain penalties required under state and local scheduling laws;
  • reimbursed expenses including cellphone plans, credentialing exam fees, organization membership dues, and travel, even if not incurred "solely" for the employer's benefit; and clarifies that reimbursements that do not exceed the maximum travel reimbursement under the Federal Travel Regulation System or the optional IRS substantiation amounts for travel expenses are per se "reasonable payments";
  • certain sign-on bonuses and certain longevity bonuses;
  • the cost of office coffee and snacks to employees as gifts;
  • discretionary bonuses, by clarifying that the label given a bonus does not determine whether it is discretionary and providing additional examples and;
  • contributions to benefit plans for accident, unemployment, legal services, or other events that could cause future financial hardship or expense.

The final rule also includes additional clarification about other forms of compensation, including payment for meal periods and "call back" pay. It can be viewed here and will take effect 30 days after its publication in the Federal Register.

More information about the final rule, including FAQs and a Fact Sheet, is available here.

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 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.

# # #

Editor's Note: This release was edited to correct the effective date of the rule.

Agency
Wage and Hour Division
Date
December 12, 2019
Release Number
19-2197-NAT
Media Contact: Emily Weeks
Phone Number
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U.S. Department of Labor Finds a South Carolina Vegetable Farm And Packing Facility Violated Federal Overtime Requirements

News Release

U.S. Department of Labor Finds a South Carolina Vegetable Farm And Packing Facility Violated Federal Overtime Requirements

PELION, SC After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Walter P. Rawl and Sons Inc. – the operator of WP Rawl in Pelion, South Carolina – has paid $101,572 in back wages to 408 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer failed to pay employees for work they performed before or after their scheduled shifts while putting on and taking off required personal protective equipment. This practice resulted in violations when this unrecorded and unpaid time occurred in workweeks that totaled more than 40 hours and the employer failed to pay overtime.

“Employers are required to record and pay employees for all of the hours that they work,” said Wage and Hour District Director Jamie Benefiel, in Columbia, South Carolina. “When unpaid work time pushes an employee into an overtime situation, the liability for the employer can add up quickly. The U.S. Department of Labor encourages employers and employees to contact us with any questions they may have and to make use of the valuable resources we provide to help them understand their rights and obligations under the law. 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 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 12, 2019
Release Number
19-1878-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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Winter Haven, Florida, Roofing Contractor Pays $60,098 in Wages And Damages After U.S. Department of Labor Investigation

News Release

Winter Haven, Florida, Roofing Contractor Pays $60,098 in Wages And Damages After U.S. Department of Labor Investigation

WINTER HAVEN, FL After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) into rebuilding efforts in the aftermath of Hurricane Irma, Residential Investment Group – operating as RIG Construction and Roofing – paid $60,098 in back wages and liquidated damages to 43 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found the Winter Haven, Florida-based roofing contractor paid employees piece-rate wages, without regard to the number of hours they actually worked. This practice resulted in violations because the employer failed to pay employees overtime for any hours they worked beyond 40 in a workweek. WHD also found recordkeeping violations when the employer failed to maintain daily and weekly records of the number of hours employees worked.

“Employers are obligated to pay their employees the wages they have legally earned,” said Wage and Hour Division District Director James Schmidt, in Tampa. “Even if employees are paid piece rates, or on salaries, they are typically still due overtime when they work more than 40 hours in a week. The outcome of this investigation serves as a reminder to all employers to review their pay practices to ensure employees are being paid correctly.”

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
December 11, 2019
Release Number
19-2108-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 Restaurant Violated Federal Wage and Child Labor Laws

News Release

U.S. Department of Labor Investigation Finds South Carolina Restaurant Violated Federal Wage and Child Labor Laws

SIMPSONVILLE, SC – Following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Mojitos LLC – a restaurant operating as Mad Cuban Café in Simpsonville, South Carolina – has paid $12,587 in back wages to 12 employees after violating the overtime, tip retention, and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The employer also paid a civil money penalty of $336 for child labor violations.

WHD investigators determined the restaurant paid employees overtime only when they exceeded 80 hours in a bi-weekly period, instead of after working 40 hours in one week, as the law requires. Investigators also found the employer kept tipped employees’ cash and credit card tips, in violation of the FLSA’s prohibition on managers and supervisors keeping or sharing in employees’ tips. Additionally, the employer violated the FLSA child labor requirements by employing a minor under the age of 16 to work more than three hours on school days, more than 18 hours during school weeks, and past 7 p.m. between Labor Day and May 31. WHD also found Mad Cuban Café failed to maintain complete records of the number of hours employees worked, resulting in recordkeeping violations.

“Employers must ensure that employees receive all wages they have rightfully earned, and they must strictly adhere to the requirements of the child labor laws,” said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. “The child labor restrictions in the law exist to ensure that young workers enjoy a safe work experience, and that their employment does not interfere with their education. The U.S. Department of Labor encourages all employers and employees to contact us if they have questions about tips, overtime or work rules for minor employees.”

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
December 11, 2019
Release Number
19-2055-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 Florida Air Conditioning Company Paying $57,000 in Back Wages

News Release

U.S. Department of Labor Investigation Results in Florida Air Conditioning Company Paying $57,000 in Back Wages

TAMPA, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Simpson Mechanical Inc. – an air conditioning maintenance and installation company based in Tampa, Florida – has paid $57,018 in back wages to 35 employees for violating the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found Simpson Mechanical Inc. failed to record and pay for time some employees spent loading trucks and traveling between job sites. The employer also paid some employees flat salaries regardless of the number of hours they worked. This practice resulted in violations when Simpson Mechanical Inc. failed to pay those employees overtime when they worked more than 40 hours in a workweek. In addition, the employer failed to include additional compensation earned by some workers in their regular rates when computing overtime, resulting in the payment of rates lower than the law requires.

Employers must pay their employees the wages they have rightfully earned,” said Wage and Hour District Director James Schmidt, in Tampa, Florida. “Simply paying workers by the job, or on a salary, doesn’t mean they’re not entitled to overtime, nor does it mean that employers don’t have to track the hours those employees work. The Tampa Wage and Hour Division district office is available to assist employers and employees in understanding their obligations and rights under federal laws and regulations.”

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
December 10, 2019
Release Number
19-2107-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Investigation Results in New Hampshire Hotel and Restaurant Paying $87,771 in Back Wages and Damages to 80 Employees

News Release

U.S. Department of Labor Investigation Results in New Hampshire Hotel and Restaurant Paying $87,771 in Back Wages and Damages to 80 Employees

MANCHESTER, NH – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), The Arlington Resorts LLC and Birch Bar & Bistro LLC – a hotel and restaurant in Bethlehem, New Hampshire – have paid $87,771 in back wages and liquidated damages to 78 employees to resolve minimum wage and overtime violations of the Fair Labor Standards Act (FLSA). The Arlington Resorts LLC - doing business as the Arlington Hotel - and Birch Bar & Bistro LLC - doing business as Birch Bar & Bistro - share common ownership and management. The hotel also paid a $1,200 civil money penalty for child labor violations.   ­­

WHD investigators found the hotel and restaurant misclassified out-of-state temporary employees as independent contractors, and paid them flat salaries without regard to the number of hours that they worked. This practice resulted in both minimum wage and overtime violations when these employees worked more hours than those salaries covered at the federal minimum wage, and when they worked more than 40 hours in a workweek but the employer did not pay overtime. The employers also failed to maintain time records for the temporary employees.

The employers also failed to combine the hours worked by local employees at the hotel with hours they worked at the restaurant in the same workweek when determining whether overtime was due, resulting in additional violations when those hours together totaled more than 40 per week. They also misapplied exemptions to some salaried employees and subsequently failed to pay them overtime when they worked more than 40 hours in a workweek.

The hotel violated the FLSA’s child labor hours provisions when one 14-year-old employee and one 15-year-old employee worked beyond the times of day and number of hours per week allowed by law.

“Complying with the Fair Labor Standards Act provides employees the wages they have earned and levels the playing field for employers who obey the law,” said Wage and Hour Division District Director Daniel Cronin in Manchester, New Hampshire. “Child labor violations are avoidable and all employers should strive to provide a safe and healthy on-the-job experience for young workers. We encourage employers to reach out to us for assistance with their compliance questions at any time.”

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
December 10, 2019
Release Number
19-1546-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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U.S. Department of Labor Investigation Results in Credit Repair Company Reinstating, Paying Employee for Family and Medical Leave Act Violations

News Release

U.S. Department of Labor Investigation Results in Credit Repair Company Reinstating, Paying Employee for Family and Medical Leave Act Violations

SALT LAKE CITY, UT After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Progrexion Teleservices Inc. – a credit repair company based in Salt Lake City, Utah – has reinstated and paid an employee $10,344 in lost wages and expenses for terminating the employee in violation of the Family and Medical Leave Act (FMLA).

WHD found Progrexion Teleservices Inc. wrongfully disciplined and terminated the Phoenix, Arizona-based employee while they were out of work due to FMLA-qualifying health conditions.

The results of the investigation led the employer to reinstate the employee to their former sales agent position and pay them $10,344 in lost wages, liquidated damages and for other expenses incurred as a direct result of the wrongful termination. The employer also agreed to train its managers on the requirements of the FMLA, and updated the company’s employee handbook with accurate FMLA requirements.

“The Family and Medical Leave Act allows workplace flexibility when employees need it most,” said Wage and Hour District Director Eric Murray in Phoenix, Arizona. “We encourage other employers to see this case as an opportunity to review their own practices to ensure FMLA compliance.”

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
December 9, 2019
Release Number
19-2054-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Investigation Results in Federal Court Ordering Blueberry Grower Munger Bros. to Pay $3.5 Million in Back Wages, Penalties

News Release

U.S. Department of Labor Investigation Results in Federal Court Ordering Blueberry Grower Munger Bros. to Pay $3.5 Million in Back Wages, Penalties

SACRAMENTO, CA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Delano, California-based blueberry grower Munger Bros. LLC and two related companies will pay $2.5 million in back wages to approximately 3,000 workers to resolve violations of the H-2A visa program and the Migrant and Seasonal Worker Protection Act (MSPA).

Munger Bros. and the two related companies will also pay $1 million in civil money penalties due to the seriousness of the violations found during the 2017 blueberry harvest season in California and Washington.

Under the consent judgment entered in the U.S. District Court for the Eastern District of California, Munger Bros. and the two related companies, which are under the grower’s control, are enjoined for three years from participating in the H-2A program and from using the services of H-2A labor contractors. When they use the services of an H-2A labor contractor, they must continue to recruit, contact and re-hire any U.S. workers.

The judgment further requires that when Munger Bros. and related companies use the H-2A program they must first contact any area farm labor contractors to meet their labor needs, purchase radio advertisements to announce available jobs, only hire transportation authorized farm labor contractors, and implement an enhanced compliance monitoring program of their labor contractors.

WHD investigators found Munger Bros., Crowne Cold Storage LLC, and Sarbanand Farms LLC violated the H-2A program by unlawfully giving preferential hiring treatment to temporary foreign agricultural workers; and for failing to recruit, contact and re-hire U.S. workers, including those previously hired through farm labor contractors. The investigation also revealed the grower failed to provide safe housing to the H-2A workers, pay workers the required rates of pay, including for time spent traveling and waiting for transportation to and from  job sites, and provide safe transportation to H-2A workers.

Investigators found the employers also used farm labor contractors to provide transportation services without being authorized, failed to provide workers with all the terms and conditions of employment, and failed to keep accurate records of actual hours worked each day for all employees.

“The U.S. Department of Labor will use all available legal tools to ensure employers comply with their obligations under our agricultural labor visa programs,” said Solicitor of Labor Kate S. O’Scannlain.

“This case demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers and protect workers from being paid less than they are legally owed,” said  Cheryl M. Stanton, Wage and Hour Administrator. “The Wage and Hour Division is always available to assist employers in understanding their responsibilities under federal laws.”

Munger Bros. is one of America’s biggest blueberry producers.

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 videoselectronic toolkits, or in-person visits with local WHD staff.

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

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 9, 2019
Release Number
19-2089-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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