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

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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

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

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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

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

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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

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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Florida-based Elevator Contractor Pays $115,839 in Wages After U.S. Department of Labor Finds Federal Contract Violations

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Florida-based Elevator Contractor Pays $115,839 in Wages After U.S. Department of Labor Finds Federal Contract Violations

MIAMI, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Global Elevators Sales and Service Inc. – an elevator installation and maintenance contractor based in Hialeah, Florida – has paid $115,839 in back wages to four employees for violating requirements of the Fair Labor Standards Act (FLSA) and the Davis-Bacon and Related Acts (DBRA).

WHD found that Global Elevators Sales and Service Inc. violated the Davis-Bacon Act after it incorrectly classified two employees as laborers instead of elevator mechanics. As a result, the employer paid the two workers prevailing wage rates lower than those required by law, and failed to pay them required fringe benefits. In addition, Global Elevators failed to record and pay for time employees worked before and after their scheduled shifts. This unpaid time spent loading and unloading trucks, and traveling to and from worksites resulted in overtime violations under the FLSA.

Contractors and subcontractors must accurately classify employees for the jobs they actually perform,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “The Wage and Hour Division will continue working to level the playing field for employers that play by the rules and to ensure workers receive the wages they have legally earned. We encourage all employers to reach out to us and to use the variety of tools we offer to ensure their pay practices comply with federal law.”

Global Elevators Sales and Service Inc. performed work as a subcontractor on a contract that Miami-Dade County Public Housing and Community Development awarded to Fortune Urban Construction LLC. The DBRA-covered contract called for work at the Martin Fine Villa construction project in Miami.

The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers prevailing wage rates and fringe benefits as determined by the U.S. Secretary of Labor and as included in their contracts.

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 FLSADBRA and other laws enforced by the WHD, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/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 5, 2019
Release Number
19-2059-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 Houston Oil Field Construction Company Paying $141,141 in Back Wages to 21 Employees

News Release

U.S. Department of Labor Investigation Results in Houston Oil Field Construction Company Paying $141,141 in Back Wages to 21 Employees

CENTER, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), JML Management Inc. – a construction company based in Center, Texas – has paid $141,141 in back wages to 21 employees for violations of the Fair Labor Standards Act (FLSA) overtime requirements.

WHD investigators found that the employer paid a day rate, typically $175 to $225 per day plus $25 per day in per diem, without regard to the number of hours employees worked. This practice resulted in overtime violations when they worked more than 40 hours in a workweek but the employer did not pay them overtime. WHD also cited the employer for recordkeeping violations.

“Employees must be paid the wages they have legally earned, including overtime when they work long hours for their employers,” said Wage and Hour Division District Director Robin Mallett in Houston, Texas. “The Wage and Hour Division engages in robust educational, outreach and compliance assistance efforts to ensure that employers understand their legal responsibilities. We encourage employers to take advantage of our many tools to help them be in compliance with labor laws.”

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

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA 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 5, 2019
Release Number
19-1792-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Investigation Results in Plumbing Company Paying $145,297 in Back Wages, Damages for Overtime Violations

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U.S. Department of Labor Investigation Results in Plumbing Company Paying $145,297 in Back Wages, Damages for Overtime Violations

WEST PALM BEACH, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Absolute Plumbing LLC – a residential and commercial plumbing company based in West Palm Beach, Florida – has paid $145,297 in back wages and liquidated damages to 46 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD found Absolute Plumbing LLC paid workers their straight-time hourly rates without regard to the number of hours they worked. This practice resulted in violations when employees worked more than 40 hours in a workweek, but the employer did not pay overtime. Additional violations occurred when the employer automatically deducted a 30-minute meal break from employees’ work time, regardless of whether their schedules allowed them actually to take those breaks. This practice resulted in violations when employees worked through their breaks, but remained unpaid for that time. In addition, Absolute Plumbing LLC failed to maintain an accurate record of actual number of hours worked by its employees.

“Employers have an obligation to pay their employees for all the hours that they work. This includes paying employees for time spent driving between job sites, and for time when they work through their meal breaks,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “The U.S. Department of Labor is committed to ensuring that businesses that violate labor laws do not gain an unfair advantage over those that play by the rules. We encourage employers and employees to familiarize themselves with their obligations and rights 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 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/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 5, 2019
Release Number
19-2040-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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Houston Wing Stop Franchisee Pays $65,316 in Back Wages, Damages And Penalties To Resolve Violations Found by U.S. Department of Labor

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Houston Wing Stop Franchisee Pays $65,316 in Back Wages, Damages And Penalties To Resolve Violations Found by U.S. Department of Labor

HOUSTON, TX – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Mylanwings Enterprises LLC – operator of a Wing Stop franchise in Houston, Texas – has paid $31,888 in back wages and an equal amount in liquidated damages to four employees and $1,540 in civil money penalties for willful violations of the Fair Labor Standards Act's (FLSA) overtime and minimum wage requirements.

WHD investigators found that the employer paid one employee a flat rate of $500 for more than 93 hours of work over a three-week period, resulting in a rate of pay below the required $7.25 per hour. The employer also failed to combine the hours individual employees worked at two of the restaurant's locations during the same workweek when determining whether overtime was due. Instead, the employer paid these employees with two separate checks under two different names, all at straight time, regardless of the total number of hours worked. This practice resulted in overtime violations when employees had worked more than 40 hours total. WHD also cited the employer for recordkeeping violations.

"Pay practices that willfully and repeatedly violate the minimum wage and overtime requirements of the law will not be tolerated," said Wage and Hour Division District Director Robin Mallett in Houston, Texas. "This employer has been found in violation in previous investigations. The U.S. Department of Labor will use every tool available to enforce 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 videoselectronic toolkits, and in-person visits to local WHD staff.

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA 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 2, 2019
Release Number
19-1787-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Investigation Results in California Farm Labor Contractor Paying $56,673 in Back Wages and Penalties

News Release

U.S. Department of Labor Investigation Results in California Farm Labor Contractor Paying $56,673 in Back Wages and Penalties

SALINAS, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Empire Farm Labor Contractor – based in Salinas, California – has paid $38,260 in back wages to 79 employees for multiple violations found under the H-2A temporary agricultural worker visa program and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The contractor also paid $18,413 in civil money penalties for the violations found in Imperial County, California, that occurred from December 2018 to May 2019.

WHD investigators found Empire Farm Labor Contractor rejected a qualified U.S. worker who applied for a job, in violation of the H-2A requirements. The employer also failed to pay H-2A workers' transportation expenses for travel from their home countries, and retained H-2A workers' passports and visas. Empire violated MSPA requirements by transporting farm workers without the appropriate licensing.

"Farm labor contractors and all agricultural employers seeking H-2A workers must abide by all of the program's requirements," said Wage and Hour District Director Rodolfo Cortez in San Diego, California. "Our work in this area safeguards American jobs while protecting the wages and safety of all agricultural workers. We encourage H-2A employers to attend our educational outreach events to learn about their responsibilities and to allow us to answer directly any questions they may have."

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

For more information about the H-2A visa program, the MSPA, 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
November 25, 2019
Release Number
19-2002-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Investigation Results in a Phoenix Kitchen and Bath Company Paying $30,000 in Lost Wages, Penalties

News Release

U.S. Department of Labor Investigation Results in a Phoenix Kitchen and Bath Company Paying $30,000 in Lost Wages, Penalties

PHOENIX, AZ – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Diamond Kitchen & Bath Inc. – based in Phoenix, Arizona – will pay $15,000 in civil penalties and an additional $15,000 in lost wages for violating federal law by requesting one of its employees to submit to a polygraph test.

WHD investigators found that Diamond Kitchen & Bath Inc.'s request for the employee to submit to the test failed to meet specific requirements under the Employee Polygraph Protection Act (EPPA) that would have allowed it.  The employer instructed the employee to submit to a polygraph test after a client reported the employee appeared to be under the influence of marijuana when he arrived to work at their residence. The employer later unlawfully terminated the employee after he failed to show up for the test. Federal law would have allowed the employer to require the employee to submit to a drug test, but not a polygraph.

"The U.S. Department of Labor provides many tools to help employers comply with the law and understand how to avoid costly violations like those in this case," said Wage and Hour Division District Director Eric Murray, in Phoenix, Arizona. "We encourage employers and employees with questions about any of their workplace rights or responsibilities to call us to speak confidentially with a trained Wage and Hour Division professional."

Enacted in 1988, the EPPA generally prohibits employers from requiring or requesting any employees or job applicants to take a lie detector test, and from discharging, disciplining or discriminating against an employee or prospective employee for refusing to take a test or for exercising other rights under the act. An employer may ask an employee to take a polygraph test only when there is a reasonable suspicion that the worker was involved in misconduct that resulted in economic harm to the employer.

For more information about the EPPA 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
November 25, 2019
Release Number
19-1915-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Investigation Results in South Florida ServPro Franchisee Paying $201,508 in Back Wages

News Release

U.S. Department of Labor Investigation Results in South Florida ServPro Franchisee Paying $201,508 in Back Wages

BOYNTON BEACH, FL After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Restoration Management 2013 Inc. – operating as ServPro in Boynton Beach, Florida – has paid $201,508 in back wages to 141 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the restoration and remediation company violated FLSA overtime requirements when the employer paid employees straight-time rates, in cash, for all the hours that they worked. This practice resulted in violations when employees worked more than 40 hours in a workweek, but the employer failed to pay overtime. Additional violations occurred when the employer automatically deducted time from some employees’ timecards for meal breaks, even when they worked through their breaks. The employer also failed to maintain accurate payroll records and failed to display an FLSA poster, both violations of FLSA recordkeeping requirements.

“Employers are required to pay their employees the wages they have legally earned for all the hours that they work,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “Our work continues to ensure that employees are paid as the law requires, and that employers compete on a level playing field. We encourage all employers to review their pay practices and their legal obligations and to contact the Wage and Hour Division for compliance assistance.”

The Wage and Hour Division encourages employees who may be owed back pay and worked for ServPro from March 2017 to February 2019, to contact the Division’s Miami District Office at 305-598-6607.

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
November 22, 2019
Release Number
19-2041-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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