New Hampshire Resort Pays $124,999 in Back Wages and Penalties To Resolve H-2B Violations Found By U.S. Department of Labor

News Release

New Hampshire Resort Pays $124,999 in Back Wages and Penalties To Resolve H-2B Violations Found By U.S. Department of Labor

MANCHESTER, NH – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), The NASWA Motor Inn Inc. – doing business as The NASWA Resort in Laconia, New Hampshire – has paid a total of $64,449 in back wages to 64 employees and $60,550 in civil money penalties to resolve violations of the H-2B non-immigrant visa program.

WHD investigators found that the resort failed to comply with several requirements of the H-2B visa program, which permits employers to hire temporarily non-immigrant foreign workers to perform nonagricultural labor or services in the U.S. for a limited time.

The NASWA Resort failed to offer the same terms and working conditions to U.S. job applicants that it provided to H-2B employees during 2016 and 2017. In its job advertisement, the NASWA Resort stated that employees would be required to pay for housing and a security deposit, but did not require H-2B employees to pay the security deposit and did not require all H-2B employees to pay for housing. The advertisement offered 35 weekly hours, significantly less than the 2016 and 2017 actual weekly averages of 48 and 45, respectively. It also failed to include the availability of a higher rate of pay in the job advertisement.

Additional violations included:

  • Placing H-2B employees in job classifications outside of those included on the employer’s approved applications, and paying workers in those categories less than the required wages;
  • Requiring the foreign employees to pay their own visa fees;
  • Using a recruiter who charged 44 of the foreign employees registration and processing fees;
  • Failing to provide the required job information to all foreign employees when required;
  • Failing to reimburse employees the required amount for travel to the resort and back to their home countries;
  • Overcharging foreign employees for housing; and
  • Failing to display the H-2B notice of employees’ rights poster.

“The Wage and Hour Division will always ensure that employers who use this program follow all of its requirements. Our work in this area safeguards American jobs, levels the playing field for law-abiding employers, and protects vulnerable workers from being paid less than they are legally owed,” said Daniel Cronin, the Wage and Hour Division’s Northern New England District Director.

WHD’s Northern New England District Office conducted the investigation. The Department’s Regional Office of the Solicitor in Boston negotiated the settlement for WHD.

WHD is distributing back wage payments to many employees who worked during the 2016 and 2017 seasons. Employees may contact the District Office at 603-666-7716 to determine whether they are due back wages and to make payment arrangements, which will require identity verification.

“The U.S. Department of Labor will continue to hold employers accountable when they employ workers outside of the approved job classifications and fail to pay the required wage rates,” said Mark Pedulla, Counsel for Wage and Hour Programs in the office of the Regional Solicitor of Labor in Boston.

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 18, 2019
Release Number
19-1419-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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U.S. Department of Labor Recovers Nearly $200,000 for Mail Haulers After Investigation Finds Company Violated Federal Labor Laws

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U.S. Department of Labor Recovers Nearly $200,000 for Mail Haulers After Investigation Finds Company Violated Federal Labor Laws

ORANGE, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), C&W Trucking Inc. – a contractor for the U.S. Postal Service (USPS) based in Orange, California – will pay $199,010 to 56 employees for violations of federal contract requirements of the McNamara-O'Hara Service Contract Act (SCA) and the Fair Labor Standards Act (FLSA).

WHD investigators determined that C&W Trucking Inc. owed employees $199,010 in unpaid prevailing wages and required health and welfare benefits. Investigators found the contractor, which hauls mail under a USPS contract, failed to pay drivers for time they spent working before and after their shifts, performing tasks such as vehicle inspections, driving to and from the post office and fueling company vehicles. The employer also violated FLSA's recordkeeping requirements by failing to record accurately the time employees actually worked.

Investigators found the employer also failed to pay employees required fringe benefits after incorrectly classifying and paying several drivers as independent contractors.

"No contractor should gain an economic advantage by paying employees below the wages and fringe benefits required when doing business with the federal government," said Wage and Hour Division District Director Rodolfo Cortez, in San Diego, California. "We urge contractors to call the U.S. Department of Labor for assistance, and to use the tools we provide to help them comply with the law."

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 SCA, and other laws enforced by the Wage and Hour Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243).  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 16, 2019
Release Number
19-2052-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Finds Mississippi-based Agricultural Employer Violated Guest Worker Visa Program Requirements in Florida

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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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