NEWARK, NJ – The U.S. Department of Labor has obtained a federal court order that requires two New Jersey construction companies and their owners and managers to pay $600,000 in back wages and liquidated damages to 131 former employees after a federal investigation found the employers engaged in an illegal bonus pay scheme.

Entered by the U.S. District Court for the District of New Jersey, the consent judgment follows an investigation  by the department’s Wage and Hour Division and litigation by the department’s Office of the Solicitor. The division found that masonry and concrete contractors Innovative Design and Development LLC, E&N Construction Inc. and Shawn Roney, Joaquim Ferreira and Elio Ferreira - the companies’ owners and operators - engaged in illegal pay practices. 

Specifically, the division found that in addition to a weekly check for 40 hours worked, the Newark-based employers paid employees with a second bonus check for overtime hours at their regular rate of pay rather than the overtime rate of one-and-one-half times the regular rate, as required by law. They also discovered the employers tried to hide the scheme by not keeping adequate and accurate records of daily and weekly hours worked. These actions violated the Fair Labor Standards Act.

“For years, Shawn Roney, Joaquim Ferreira, Elio Ferreira and their companies schemed to withhold overtime wages earned by their hard-working employees and tried to cover up their wage theft by falsifying records. Their actions were a gross violation of federal law,” said Regional Solicitor Jeffrey S. Rogoff in New York. “The U.S. Department of Labor will use every means available and necessary, including litigation, to expose employers like these and hold them accountable for violating workers’ rights.” 

In addition to requiring the employers to pay back wages and liquidated damages, the court forbid them from future FLSA violations, retaliation against their employees, directly or indirectly, and seeking or accepting any of the back wages or liquidated damages paid to employees. Any company that the individual defendants own or operate will also be bound by these provisions. Defendants must also distribute flyers and fact sheets on workers’ rights and overtime pay requirements governed by the FLSA.

“These employers shortchanged people whose hard work enables their companies to profit and disregarded federal laws that protect workers’ rights,” said Wage and Hour Division District Director Paula Ruffin, in Mountainside, New Jersey. “The outcome in this case shows there are costly consequences for violating employees’ trust and federal law, and potentially serious harm to a business’ public reputation.” 

The division’s Northern New Jersey District Office conducted the investigation. Trial attorneys Andrew Katz, Peter F. Kellett and Frances Y. Ma litigated the case for the department’s Office of the Solicitor in New York. 

The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half their regular rate of pay for all hours worked over 40 in a workweek. 

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Employers and workers can call the division confidentially with questions, regardless of their immigration status. The division can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free, available in English and Spanish.

Su v. Innovative Design and Development LLC; E&N Construction, Inc.; Joaquim Ferreira, individually; Shawn Roney, individually; and Elio Ferreira, individually.

Civil Case No.: 2:19-cv-18495(SDW)(JBC)

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Employer:      Pace Enterprise LLC, operating as Pace Realty Group 

                             4005 SW 50th Ave. 

                             Amarillo, TX 79109 

Investigation findings: A U.S. Department of Labor Wage and Hour Division investigation found the owner of Pace Enterprise LLC – operating as Pace Realty Group – misclassified 37 maintenance workers and parts runners as independent contractors and, by doing so, failed to pay them overtime for hours over 40 in a workweek, a violation of the Fair Labor Standards Act. Additionally, the employer failed to keep legally required records.

Back Wages recovered: $75,061 in overtime wages and $75,061 in liquidated damages for 37 employees.                                             

Quote: “By misclassifying employees as independent contractors, the employer denied them full wages and important benefits and protections,” said Wage and Hour Division District Director Evelyn Ortiz in Albuquerque, New Mexico. “Employers have the legal obligation to follow labor laws. If you need help understanding labor law requirements, contact us.”

Workers can use the division’s Workers Owed Wages search tool to see if they are owed back wages collected by the division. Employers and workers can contact the Wage and Hour Division for assistance at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division, including the agency’s restaurants compliance assistance toolkit and an overview about the FLSA protections for restaurant workers. 

Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free in English or Spanish. 

PITTSBURGH – In one of the nation’s largest wage recovery judgments, a Pennsylvania federal court has awarded $35.8 million in overtime back wages and liquidated damages to 6,000 current and former workers employed by the operators of 15 residential skilled nursing, rehabilitation and assisted living facilities in western Pennsylvania that willfully denied them overtime pay.

After a 13-day bench trial, the July 22, 2024, judgment in the U.S. District Court for the Western District of Pennsylvania is the department’s latest step to recoup wages and damages, jointly and severally, from the 15 nursing facilities, their owner and CEO Samuel “Sam” Halper and CHMS Group, the payroll office that the defendants used to oversee and implement their illegal compensation practices. The action follows an investigation by the department’s Wage and Hour Division in Pittsburgh and litigation by its Office of the Solicitor in Philadelphia.

“Far too often, our investigations find that workers who provide essential care services to those who need them most are not receiving their hard-earned wages from employers,” said Wage and Hour Administrator Jessica Looman. “The Wage and Hour Division is committed to protecting workers’ rights to be paid fully and fairly and holding employers who violate these rights accountable.”

Specifically, department investigators discovered that the employers violated the Fair Labor Standards Act for years, across their enterprise, by doing the following:

• Willfully failing to pay employees for all hours worked, including work done during meal breaks.
• Failing to incorporate all promised compensation, including non-discretionary bonuses and shift differentials, when calculating overtime pay.
• Avoiding paying overtime by incorrectly treating employees as exempt from the act’s overtime requirements.
• Not keeping accurate records of hours employees worked and compensation due for those hours.

After the employers refused to resolve their violations administratively, the department filed suit in 2018 in federal court. The trial featured 50 testifying witnesses and more than 600 exhibits. Senior Trial Attorney Alejandro Herrera and trial attorneys Mohamed Seifeldein and Erik Unger conducted the trial on behalf of the department. A representative of the department’s Office of the Chief Information Officer testified to the significant effort to summarize the employers’ inaccurate employment records and determine the amount of back wages due. In addition to being jointly and severally liable for the back wages and damages, Halper, CHMS Group and the 15 facilities are all permanently forbidden from further FLSA violations.

“The U.S. District Court’s decisive and historic ruling that Sam Halper and his nursing facilities willfully violated labor laws affirmed the Department of Labor’s position that the employers committed wage theft intentionally,” said Solicitor of Labor Seema Nanda. “The outcome of the department’s investigation and litigation also shows our unwavering commitment to enforcing the employee protections in the Fair Labor Standards Act and ensuring employers fulfill their obligation to comply with the law.”

The employers and their owners operate residential skilled nursing, rehabilitation and assisted living facilities throughout western Pennsylvania.

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). Workers and employers can contact the division confidentially, regardless of where they are from. The division can speak with callers in more than 200 languages.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s new Timesheet App for Android and iOS devices to ensure hours and pay are accurate.

HOUSTON – The U.S. Department of Labor has asked a federal court in Houston to stop the owner and operator of 17 single-family residential group homes and a day habilitation center for adults with disabilities from violating several federal employment regulations and to pay dozens of current and former employees back wages they’re owed as well as damages.

The department filing in the U.S. District Court for the Southern District of Texas alleges TEAM Abilities LLC and its founder and CEO Rachel Jelks willfully failed to pay overtime to the majority of her employees who regularly worked more than 40 hours in a workweek in violation of the Fair Labor Standards Act.                                                           

The action follows an investigation by the department’s Wage and Hour Division that found the company, operating as T.E.A.M. Abilities, required direct care staff working in residential facilities to work 16 – 24 hour shifts and did not provide adequate sleeping accommodations or rest periods. Direct care staff slept in recliners or on couches and were frequently interrupted, sometimes as often as every half hour, to provide resident care throughout the night. Jelks and T.E.A.M. Abilities chose to pay many of these direct care staff members straight time for all hours worked.

The division also learned Jelks willfully withheld some direct care employees’ overtime pay because they asked to be treated as independent contractors for tax purposes, which is not allowed under federal law. Recent regulations address how the department determines if a worker is an employee or an independent contractor.

When the investigation concluded, the division calculated $115,077 in overtime wages and $115,077 in liquidated damages owed to 56 current and former workers. As T.E.A.M. Abilities continues to violate the law, those amounts continue to increase.

“Employers must pay time  one-half an employee’s regular rate of pay for all hours worked over 40 in a workweek when an employee is not exempt under the Fair Labor Standards Act,” said Southwest Regional Wage and Hour Division Administrator Betty Campbell. “Our investigation found T.E.A.M. Abilities violated the law willfully and continues to ignore the law while its employees are suffering financially for its defiance.”

In its filing, the department seeks back wages owed for a period of three years due to the willful nature of the violations, an equal amount in liquidated damages, and an injunction requiring future FLSA compliance. In addition, the action asks the court to assess the employers with the department’s costs for its litigation and an order granting other further relief as necessary and appropriate. 

“The Department of Labor is committed to protecting workers’ rights to be paid all of their hard-earned wages and will use all legal means necessary to recover their money,” said Regional Solicitor of Labor John Rainwater in Dallas. “T.E.A.M. Abilities and CEO Rachel Jelks will ultimately learn there are costly consequences for employers who mistakenly believe they can refuse to comply with federal labor regulations.”

Based in Spring Texas, TEAM Abilities LLC provides assisted living services in the Houston area for adults with disabilities. Its services include assistance with adaptive equipment and aids, providing temporary relief for caregivers, supporting individuals in community living settings, offering mental health services, ensuring oral health, making living quarters safer and more accessible, and assisting with job placement and support.

For more information about the Fair Labor Standards Act and other laws enforced by the division, contact the agency’s toll-free helpline confidentially at 866-4US-WAGE (487-9243). The division can speak with callers in more than 200 languages, regardless of where a caller is from.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s new Timesheet App for iOS and Android devices – available in English and Spanish – to ensure hours and pay are accurate.

Employer:      Investier LLC, operating as Round Table Pizza

                            5016 NE Thurston Way

                            Vancouver, WA 98684

Investigation findings: A U.S. Department of Labor Wage and Hour Division investigation found the owner of a Round Table Pizza restaurant unlawfully kept a portion of the tips earned by workers by allowing managers to participate in the restaurant’s tip pool, a violation of the Fair Labor Standards Act. Federal law forbids employers or managers from keeping employees’ tips for any purpose.

Back Wages Recovered:       $64,681 in unpaid tips for 52 employees

                                                          $64,681 in liquidated damages for 52 employees

                                                          $28,548 in civil money penalties for the willful nature of the violations

Quote: “Many restaurant employers continue to shortchange vulnerable workers by using the tips they receive to supplement managers’ and supervisors’ salaries,” said Wage and Hour Division District Director Katherine Walum in Portland, Oregon. “We are determined to stop these unlawful schemes. As Round Table Pizza has learned, wage theft in any form has costly consequences for employers.” 

Background: In fiscal year 2023, the division successfully recovered more than $29.6 million in back wages for nearly 26,000 food service workers nationwide and assessed $6.1 million in civil money penalties in the food services industry.

Investier LLC owns and operates 14 Round Table Pizza franchise locations in Portland, Oregon, and Vancouver, Washington. 

Workers can use the division’s Workers Owed Wages search tool to see if they are owed back wages collected by the division. Employers and workers can contact the Wage and Hour Division for assistance at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division, including the agency’s restaurants compliance assistance toolkit and an overview about the FLSA protections for restaurant workers. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free in English or Spanish. 

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LAS VEGAS – The U.S. Department of Labor has recovered $475,385 in back wages and liquidated damages from the owner of three Juan’s Flaming Fajitas & Cantina restaurants in Las Vegas and Henderson who did not combine hours worked by 32 employees at more than one location and improperly withheld overtime wages earned by employees.

The department’s Wage and Hour Division determined that the restaurant’s owner, Juan Vazquez, failed to pay the affected workers overtime for hours over 40 in a workweek and wrongly exempted two others from overtime eligibility, both violations of the Fair Labor Standards Act. After the investigation, the employer agreed to correct its recordkeeping practices, including total hours worked at multiple locations to ensure proper calculation of overtime.

In addition to the division’s recovery of $237,692 in back wages and an equal amount in liquidated damages for the workers, the department assessed $12,050 in civil money penalties for the willful nature of the violations.

“Our investigators found Juan’s Flaming Fajitas & Cantina deliberately withheld overtime pay earned by dozens of hard-working employees,” explained Wage and Hour Division District Director Gene Ramos in Las Vegas. “This case’s outcome highlights the importance of protecting workers’ rights, including their right to be paid fairly and fully, and reflects the types of violations we find far too often in food service industry investigations.”

Juan’s Flaming Fajitas & Cantina operates two Las Vegas locations and one in Henderson.

In fiscal year 2023, the division recovered more than $29.6 million in back wages for nearly 26,000 workers in the food service industry.

For more information about the Fair Labor Standards Act and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Workers and employers can call the division confidentially with questions, regardless of where they are from, and the division can speak with callers in more than 200 languages.  

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s Timesheet App for iOS and Android devices – free and available in English and Spanish – to track hours and pay.

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Employers:    Axis Home PCA Agency Inc. 

Cubtan Nur, owner                    

Action:           Consent judgment and order 

Court:             U.S. District Court for the District of Minnesota 

Court action: The Department of Labor has recovered $135,000, representing $67,500 in back wages and an equal amount in liquidated damages, for 57 employees of Axis Home PCA Agency  Inc. after an investigation by the department’s Wage and Hour Division found the Minneapolis employer violated the Fair Labor Standard Act’s overtime and recordkeeping provisions. 

A consent judgment and order entered by District Court Judge John R. Tunheim on July 16, 2024, requires the agency and owner Cubtan Nur to make the back wage payments, maintain an electronic timekeeping systems and abide by the FLSA in the future.

The department filed a complaint on Aug.15, 2022, after investigators found Axis typically paid their employees straight-time pay for all hours worked - failing to pay employees one and half times their regular rates for hours over 40 in a workweek - from at least May 16, 2019, to May 15, 2021. Its employees provide in-home personal care services to children and adults.

Quote: “These caregivers provide their clients with critical in-home care to maintain their dignity and support their ongoing care needs. They deserve the wages they have rightfully earned for their hard work and dedication,” said Wage and Hour District Director Kristin Tout in Minneapolis. “Employers are legally responsible for knowing and complying with federal wage laws.”

“The injunctive relief provided by this consent judgment - including requiring the payment of overtime whenever an employee works more than 40 hours, regardless of whether they are working for different clients or doing different tasks - will protect Axis’s employees,” added Regional Solicitor of Labor Christine Z. Heri in Chicago. “The department will continue to allocate its resources to protect caregivers, who are disproportionally women of color and among the nation’s lowest paid workers.” 

Background: In fiscal year 2023, the Wage and Hour Division recovered more than $31.8 million in back wages for workers in the healthcare industry nationwide and $528,886 for workers in Minnesota. The Wage and Hour Division offers resources for health care workers on its website. 

Learn more about the Wage and Hour Division, a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

Download the agency’s new Timesheet App for iOS and Android devices – also available in Spanish –to ensure hours and pay are accurate.

United States Department of Labor v. Axis Home PCA Agency, Cubtan Nur, owner

Civil Action No. 22-2002

GOOSE CREEK, SC – The U.S. Department of Labor has recovered $1,091,515 in back wages for 43 employees of a Goose Creek federal contractor that paid them rates lower than required by federal law.

The department’s Wage and Hour Division learned that – after acquiring Honeywell Technology Solutions Inc. – KBRwyle Technology Solutions LLC changed the title of quality control inspectors used by the original contract holder from supply technicians to technical instructors. While the employees still performed the same work as quality control inspectors, the employer paid them rates lower than the required prevailing wage rate, violating the McNamara-O’Hara Service Contract Act. The practice also resulted in the company paying overtime at a lower rate than required, a violation of the Contract Work Hours and Safety Standards Act. 

“Contractors must follow requirements specified for work performed under federal contracts to make certain they pay employees the correct wages for the type of work they do,” explained Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “Workers on federal contracts perform critical work for our country. We enforce prevailing wage laws to ensure that the workers who help our country run receive their full, hard-earned wages.” 

KBRwyle Technology Solutions LLC assumed the federal contract awarded to Honeywell Technology Solutions for logistical support by the U.S. Army. The company is a subsidiary of KBR, the Houston-based science, technology and engineering company, which employs about 35,000 people worldwide in more than 80 countries with operations in over 30 countries. 

Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division, including numerous online resources for employers, such as a website for frequently asked questions about the McNamara-O'Hara Service Contract Act and the Contract Work Hours and Safety Standards Act. Workers can call the Wage and Hour Division confidentially with questions – regardless of their immigration status – and the department can speak with callers in more than 200 languages. Workers and employers can help ensure hours worked and pay are accurate by downloading the department’s Android or iPhone Timesheet App for free in English and Spanish. 

DALLAS – In one of the largest recoveries of its kind, the U.S. Department of Labor has recouped more than $1.5 million in unpaid overtime wages and damages from a heating, ventilation and air conditioning company that deprived 430 technicians of their rights, protections and benefits under law by misclassifying them as independent contractors.

The recovery follows an investigation by the department’s Wage and Hour Division that found C&G HVAC LLC in Dallas owed the affected technicians $756,158 in unpaid overtime wages and an equal amount in liquidated damages. 

“C&G HVAC denied these technicians their full wages, hurt taxpayers by not paying related payroll taxes and gained an unfair advantage over their law-abiding competition,” explained Wage and Hour Division’s Southwest Regional Administrator Betty Campbell in Dallas. “These employees, who do essential work installing, maintaining and repairing cooling systems in North Texas, stand to collect thousands of dollars in back wages and damages owed to them for their hard work.”

Preventing employee misclassification has been a Wage and Hour Division priority as the improper employment practice deprives workers of their rights to minimum wage, overtime pay and other protections. 

In fiscal year 2023, the division recovered over $24.5 million in back wages for about 20,000 misclassified workers nationwide. In Texas, the division recovered $2.2 million for 5,100 misclassified workers. 

“The Wage and Hour Division will take decisive action when employees are misclassified as independent contractors. C&G HVAC has learned there are significant consequences for violating the rights of their employees and failing to comply with federal law,” Campbell added. “We encourage other employers to take note of this case’s outcome and to ensure that they are affording their employees the minimum wage and overtime pay they are entitled to under the law.” 

Whether a worker is an employee or an independent contractor under the Fair Labor Standards Act requires an analysis of the economic realities of the worker’s relationship with the employer. 

Established in 2017, C&G HVAC LLC in Dallas provides heating, ventilation and air conditioning repair services in North Texas.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers and employers can call the division’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from. Calls are confidential and the division can speak with callers in more than 200 languages. 

Download the agency’s new Timesheet App for iOS and Android devices, now available in English and Spanish, to ensure hours and pay are accurate. 

HOUSTON – The U.S. Department of Labor has filed suit asking a federal court to require the owner and operator of three popular north Houston-area restaurants in Tomball and Spring - that allegedly used a portion of employees’ tips for business expenses, including condiments and takeout packaging - to pay back wages and damages to the affected workers.

The allegations stem from investigations by the department’s Wage and Hour Division that found Tejas Chocolate LLC and Tejas Dragon Companies LLC collected the employees’ tips to distribute among them; however, the employer diverted some of the tips for business purposes in violation of the Fair Labor Standards Act. By law, tips are the property of those who earn them, and cannot be used to pay business expenses. 

Filed by the department’s Office of the Solicitor, the suit seeks back wages and an equal amount in liquidated damages for current and former employees of two locations of Tejas Chocolate & Barbecue, operated by Tejas Chocolate LLC, and Tejas Burger Joint, operated by Tejas Dragon Companies LLC, from May 2021 to May 2023 and beyond if the division finds the employer continued to use employees’ tips improperly.

“When it comes to workers’ tips, the law is crystal clear: tips are the property of the workers who earn them,” explained Regional Wage and Hour Administrator Betty Campbell in Dallas. “The owner and operator of Tejas Chocolate & Barbecue and Tejas Burger Joint willfully deprived employees of all their hard-earned tips and used their money to illegally benefit their businesses.”

The department filed its lawsuit on July 19, 2024, in the U.S. District Court for the Southern District of Texas, Houston Division.

“The Department of Labor is determined to protect the rights of all workers when their employers shortchange them for any reason and will use all legal means necessary,” said Regional Solicitor of Labor John Rainwater in Dallas. “The operator of these businesses directly violated the law, denying employees all the tips left by their customers to recognize their good service.”

Tejas Chocolate LLC was founded in 2011 and services the north Houston area. The same employer also founded Tejas Dragon Companies LLC in Tomball in 2019. 

For more information about the Fair Labor Standards Act and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Workers and employers can call the division confidentially with questions, regardless of where they are from, and the division can speak with callers in more than 200 languages.  

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s new Timesheet App for iOS and Android devices – free and available in English and Spanish – to track hours and pay.

Court: U.S. District Court for the Southern District of Texas, Houston Division

Docket Number: 4:24-cv-02695